The United Kingdom isin full stagflation“, according to the director-general of the CBI, the main employers’ organization in the country, which opens its annual conference in Birmingham on Monday. “We are gathered again in extraordinary times. Britain is in the midst of stagflation – hit by runaway inflation and negative growth“, Tony Danker declared on Monday at the opening of this conference of the Confederation of British Industry (CBI).”We know how to fight inflation. We know how to fight recession. But we don’t really know how to fight them together“, he added.
The UK has entered recession and its gross domestic product is expected to fall by a further 1.4% next year, the OBR, the government budget forecasting body, has predicted. Inflation is at 11%, a record for four decades. “The only thing holding up growth is increasing working hours thanks to increasing immigration“, assured Mr. Danker in front of a full room at the Vox conference center in Birmingham. Prime Minister Rishi Sunak will attend the conference in Birmingham, central England, on Monday, where he will follow up Mr Danker’s speech. The CBI chief has identified three priorities for economic growth. The government should, he said,free up investment from the private sector“. He must “changed financial rulesto overcome political obstacles. The companies mustshow more ingenuity“. He also calls for easing immigration rules.”Let’s get economic migration in the areas where we won’t soon have the workers or the skills at home. Instead, let’s make these visas time-limited“, he declared.
“Remember that GDP is a simple multiplier of two things: people and their productivity. And it’s time to be honest: We don’t have the people we need or the productivity“, he insisted. Danker also called on Monday to speed up the country’s international trade,”lowest as a percentage of the G7’s GDPby signing an agreement around the dispute over the Northern Ireland Protocol, to unlock the potential of the Brexit deal with the EU.