[ad_1]
The UK economy has been hit harder than other leading nations and the outlook for the country is dire amid negative trends in the global economy.
Recession, devaluation of the pound, inflation and a shrinking economy are some of the indicators predicting the negative trend of the British economy.
UK GDP fell by 0.2% in the third quarter – between July and September – ending five consecutive quarters of growth. It is the only G7 economy to contract in the third quarter and is now smaller than before the coronavirus pandemic began.
The nation’s longest recession
Earlier this month, the Bank of England warned that the country was facing its longest recession since records began, with the economic slowdown expected to stretch well into 2024. The recession will push almost half a million people out of work as British families face the worst recession yet. A decline in living standards.
Growth is projected to continue to decelerate over the next year and into the first half of 2024. The bank is estimated to have raised its benchmark interest rate by a historic 75 basis points, the largest increase since 1989.
OECD estimates
The UK will be the worst-performing country among the world’s major 38 member economies next year as the global economy continues to suffer the knock-on effects of the biggest energy shock in four decades, the Organization for Economic Co-operation and Development has warned. Latest report.
Among the G-20 economies, negative growth is projected for Russia, the UK and Germany.
The OECD’s acting chief economist, Alvaro Pereira, said the UK’s negative performance was due to a combination of factors including rising interest rates, government action to reduce borrowing and debt and market turmoil during Liz Truce’s tenure as prime minister.
Currently, the UK is the only G7 country whose economy is smaller than before the Covid-19 crisis. Average real wages are still below their pre-2008 levels and are not forecast to rise before 2028, according to a report by the Rosa Luxemburg Stiftung.
Brexit still haunts
Advocates of Britain’s exit from the European Union presented a utopian picture where Brexit would remove all barriers to economic growth.
But six and a half years after the Brexit referendum, it has become a nightmare for Britons as it has done more harm than good. The UK is now facing a prolonged recession, cost of living and unemployment.
Experts estimate that Brexit has reduced Britain’s GDP by at least 4 percent. In terms of its political implications, it gave Britain its fifth PM in six years, plunging the country into its unprecedented political crisis.
Read all the latest news here
[ad_2]
Source link
