The current economic outlook for the British is pessimistic to say the least. The United Kingdom is currently forecasted by Goldman Sachs to decrease in total GDP by 1.3% in the next year. This leaves them as a close second out of the group 10 major economies only to Russia(1.4%), a country that is currently facing numerous sanctions from their invasion of Ukraine and the opposition of Joe Biden, the US, and most of the planet.
The Brits face their harshest decline in living standards ever while interest rates and inflation both continue to rise. Additionally, they expect an increase in unemployment next year with food and energy prices rising fast. The Organization for Economic Cooperation and Development is predicting that the UK will continue to fall behind in terms of growth compared to the other group 10 countries.
In summary, recession seems all too likely and impending for the UK with the massive decline in trade from Brexit, the consequences from Russia’s war in Ukraine(along with most of the globe), and the problems from China’s Covid-19 procedures disrupting the UK supply.
Interesting to see what's going on at the other side of the pond. Do you believe that the US will face consequences directly related to the UK's economy? We obviously share some similar issues with them, but not all. Talk of recession always grabs people's attention, and we are trying hard to not go down that path.
ReplyDeleteIt is crazy to see the UK getting hit by two global issues directly effecting their economy. If these issues continue to linger it seems it will have lasting effects on their economy.
ReplyDeleteIt definitely makes sense that the U.K. economy is facing similar challenges to the U.S. Especially with supply chain issues and the Russia/Ukraine war. I wonder what role Brexit is playing in this and how their challenges differ from ours, since the U.S. economy is stronger than the U.K.s to begin with.
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