The UK is already in the midst of a recession and inflation is on track to hit 14% this year, according to estimates by the British Chamber of Commerce (BCC), increasing pressure on the country’s new Prime Minister to act. quickly and avoid economic catastrophe.
The business lobby group said they expect the economy to continue its second-quarter contraction with two more periods of decline to complete the year before a small rebound of just 0.2% in 2023.
The BBC attributed the crumbling outlook to rising energy costs and falling household spending and real wages, as well as a weaker export outlook, poor investment conditions and weak business confidence.
Meanwhile, inflation will hit 14% this winter, according to the BCC, and will be 5% by the end of 2023. While the forecast is less dramatic than those published in recent days, the lobby group’s warning contains strong claims on behalf of Business UK for immediate action. .
“Time flies by,” said Alex Veitch, director of policy at BCC. “Governments must step up and do what is necessary to protect businesses, livelihoods and jobs. Existing extreme inflationary pressures will only intensify as we approach Christmas.”
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