Britain on the brink of recession

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Britain’s gross domestic product fell again in August. It registered a fall of 0.3% according to the latest figures from the Office for National Statistics. A fall that defies forecasts and halts a slight recovery in the economy in July.

All sectors of the UK economy are affected by this decline, whether it is the production of goods or services. One of the main culprits is of course the significant increase in oil and gas prices.

And then there is inflation, close to 10%, which slows down all economic activity. The British consume less. The consequence is that the economy slows down. To try restarting the machine, Prime Minister Liz Truss presented at the end of September a support plan with subsidies and tax breaks. But these measures worry investors and disrupt the markets because they can cost the state very dearly.

A slowdown for 2023?

This assistance can also complicate the fight against rising prices. Other bad news: the forecasts are not reassuring. The International Monetary Fund predicts a significant slowdown in UK economic activity in 2023, with growth estimated at 0.3%, well below the 3.6% expected in 2022.

► To also read: UK budget proposals: “Government sticks, markets don’t believe it”

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