He United Kingdom will have five lost years of economic growth, due to the triple blow caused by the Brexitthe pandemic and the war in Ukraine, according to an analysis by the National Institute for Economic and Social Research (NIESR).
Thus, the purchasing power of British workers in many areas of the United Kingdom will remain until the end of 2024 below the levels seen before the covid-19 crisis.
That “think tank” He highlighted that while the UK has avoided recession (two consecutive quarters of economic contraction), there is still a 60% risk that it will do so by the end of next year.
According to the analysis, UK Gross Domestic Product will increase by 0.4% in 2023.
Stephen Millard, deputy director of macroeconomic modeling at the NIESR, said that “The triple shock of Brexit, covid and the Russian invasion of Ukraine, together with the monetary tightening that has been necessary to reduce inflation, have hit the UK economy hard.”
“The need to address low growth in the UK remains a key challenge for policy makers as we approach the next election (due in 2024)”he added.
Last week the Bank of England raised interest rates from 5 to 5.25%, the highest level in 15 years, in order to control year-on-year inflation, which stands at 7.9%.
This was the fourteenth consecutive rise in the price of money, decided at the end of the meeting of the Monetary Policy Committee of the English entity, whose objective is to control inflation so that it remains at 2%.
Source: EFE
Source: Gestion
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