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Inflation in Britain: unemployment will increase |

A 0.4 percent decline is expected in the economy next year

Britain 0.4 percent decrease in the economy is predicted next year.

Britain This is the forecast of the Confederation of British Industry (CBI). it is said.

The document states that Britain the reason for the economy to decrease by 0.4 percent next year is that inflation remains high. Companies are holding back on investment, which has a bleak effect on long-term growth.

This differs from the CBI’s forecast released in June. In that report, it was mentioned that the British economy is expected to grow by 1 percent for 2023.

The current forecast, however, emphasizes that the economy is in sharp decline and gross domestic product (GDP) is not expected to return to pre-Covid levels until mid-2024.

Britain naturally after Russia’s invasion of Ukraine gas after the increase in prices, as well as the COVID-19 pandemic labour has been hit hard by the lack of full market recovery and persistently weak investment and productivity.

Unemployment will rise to 5 percent in late 2023 and early 2024, up from 3.6 percent now, the CBI said.

In October, British inflation hit a 41-year high of 11.1 percent, sharply squeezing consumer demand.

The CBI predicts an average decline of 6.7 percent next year and 2.9 percent in 2024.

The CBI’s GDP forecast is less gloomy than that of the British government’s Office for Budget Responsibility, which last month predicted a 1.4 percent contraction for 2023.

But the CBI forecast is in line with the Organization for Economic Co-operation and Development (OECD) that Britain will be Europe’s worst performing economy next year against Russia.

Photo: Reuters

At the end of 2024, the CBI predicts that business investment will be 9 percent below pre-pandemic levels, and productivity per worker will be 2 percent below pre-pandemic levels.

To prevent this, the CBI government wants to make Britain’s post-Brexit work visa system more flexible, more for investment tax called for concessions:

“If action is not taken, we will witness a decade of lost growth. Because two simple factors are noticeable in GDP: people and their productivity. But we don’t have the people we need, nor the productivity.”

Price increases and energy crisis in Europe started in February of this year.

The reason is Russia’s attack on Ukraine.

Europe The Commonwealth of Nations considered Russia’s attack on Ukraine an invasion and unacceptable, and therefore imposed various sanctions on Russia.

Russia and in turn created obstacles in the transportation of oil and gas to Europe.

All this is the responsibility of both sides, that is, both Russia and Europe It has caused weakening of the economy of the Union countries and high-interest inflation.



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