VOT Research Desk
The Confederation of Corporate Industry (CBI) stated on Monday that according to its most recent predictions for the UK economy, the country will experience a year-long recession in 2023 due to high inflation and declining business investment.
With skyrocketing inflation, negative GDP, declining productivity, and decreased business investment, Britain is experiencing stagflation. Businesses perceive prospects for possible growth, but in 2023 they are holding off on investing due to challenges.
Britain’s economy is projected to contract 0.4% in 2019 compared to its previous prediction from June, which called for growth of 1.0% in 2023.
According to CBI, inflation will gradually decrease, averaging 6.7% in 2019 and 2.9% in 2024.
Business investment, according to the CBI, is expected to be 9% lower than it was before the pandemic, and output per worker will be 2% lower.
