The British economy contracted between July and September, which could be the start of a long recession, according to economic analysts. With soaring inflation, popular discontent, and relative political instability – the country holds its third prime minister position this year – the challenge for the government is to adjust the calculus and return to growth.
According to data released on Friday, the 11th, Britain’s economic production contracted by 0.2% in the third quarter, slightly below the expectations of analysts consulted by the agency. Reuters Shrinkage of 0.5%. It was the first drop in GDP since early 2021, when the UK was still under severe restrictions to try to contain the Covid-19 pandemic.
The British economy is now smaller than it was before the pandemic and is the only one of the G7 economies that has yet to fully recover from the recession caused by Covid-19 health restrictions.
a Government of Prime Minister Rishi Sunak, It is preparing a plan to increase taxes and cut spending, which Treasury Secretary Jeremy Hunt is expected to announce next week. When asked about the drop in GDP and a possible recession, Hunt said he reiterated warnings that tough decisions need to be made.
“I have no illusions that there is a difficult path ahead — a path that will require very difficult decisions to restore confidence and economic stability,” Hunt said. But in order to achieve long-term sustainable growth, we need to control inflation and make debt go down. There is no other way.”
With inflation reaching 10% in October, residents became unhappy and unions started to do so Organizing strikes in search of a salary adjustment🇧🇷
