Great Britain enters recession and is about to experience lost ten years with no growth plan

As it was stated by the Confederation of British Industry (CBI), there’s an actual risk for the economy of Great Britain to experience ten years without growth. This outcome will be possible if the country’s government doesn’t take necessary action with regard to investment tax reliefs, the Northern Ireland protocol and the shrinking workforce.

In its most recent forecast, the CBI warned that a “short and shallow” recession had already started in Great Britain, and it would lead to a decrease of some important indicators by the end of 2024. As it was noted, by this time business investment would be 9% below the levels of 2019, while productivity would fall 2% below its pre-pandemic figures.

According to a statement made by CBI Director General Tony Danker, it seems that the country is leaving the path set by Prime Minister Rishi Sunak at his February lecture when he was Chancellor. Danker noted that the government is likely to remove incentives for investing and innovation, and abandons any growth plans.

Danker said that Great Britain is currently in stagflation, considering its rapid inflation, negative growth, decline of productivity and business investing. According to his words, companies are aware of growth prospects, but a lack of ‘reasons to believe’ keeps them from investing in the following year. At the same time, Danker believes the officials are able to change the situation, but in case they don’t act reasonably the country will face a decade with no economic growth.