By Ricardo Lezama La Cartita (@LaCartita)
09/mar/2023
British workers have reason to worry. The United Kingdom is inching closer and closer to entering a recession, and the economic situation is not encouraging. Offices such as the British Office for Budget Responsibility and the International Monetary Fund (IMF) predict that the economy will shrink by 2023. This situation is reflected in social unrest, manifested in strikes by transport and health workers.
To understand the poor state of the British economy, it is important to analyze the most pressing problems. On the one hand, the lack of fresh food on supermarket shelves is a sign that citizens have less access to basic goods. On the other hand, house prices have risen so much that buying your own home has become increasingly difficult, house prices in the UK are the highest since 1876 and renting has become increasingly expensive. In addition, the IMF forecasts that the UK will suffer a worse contraction than Russia by 2023. Finally, the inflation spiral shows no signs of improvement, UK inflation remains above 10% and is one of the highest in the world.
It is clear that the UK’s economic situation requires an urgent response. Britons need an economic policy that promotes growth in the economy, reduces inflation and improves accessibility to basic goods. “Recent developments in the labor market suggest that the Bank of England’s fight against high inflation is far from over and the risks of second-round effects are acute,” said Silvia Dall’Angelo, senior economist at Federated Hermes Limited.