The Confederation of British Industry (CBI), the UK’s main trade organisation, has revealed that “Britain is on the verge of sliding into recession under the greatest financial pressure since the 1950s”. He warned the government that a stagnant economy would be ‘set in stone’ if action was not taken before the summer holidays. The CBI further stated that “the countdown is on for the Prime Minister and Chancellor to take the ‘critical action’ needed to avert collapse”. CBI had lowered its growth outlook for this year from 5.1% to 3.7% while warning Britain of possible threats, DailyMail reports.
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The agency also warned that with the cost of living crisis, airports scrambling to cope and nationwide rail strikes planned and timed to coincide with EU Groundhog Day on the fight protocol against Northern Ireland, the economy would be a distant second place for politics in the coming months. .
He added that “we expect inflation to remain elevated in the fall, hitting 8.7% in October, leading to a historic squeeze in household incomes, which will impact consumer spending.”
CBI chief executive Tony Danker said: “Let’s be clear – we expect the economy to be fairly stable. It won’t take us long to get into a recession, and even if we don’t, we’ll feel the same way for many people.”
He even asked ministers to ‘stop taking unilateral action’ to solve trade problems in Northern Ireland.
In an interview with The Sunday Times, Mr Danker openly criticized the government, saying ‘you have Conservative politicians pushing for their own ideological favorite in return for supporting the Prime Minister’.
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The agency further warned that Britain was heading into a “domestic recession” as citizens face problems due to the cost of living crisis.
The new Northern Ireland protocol gives the European Court of Justice an advisory role and also focuses on repealing most EU controls on goods shipped to the province.
However, CBI also criticized the move, saying “it could lead to trade disputes.”
The CBI called for measures, including measures to address labor and skills shortages to overcome the situation and safeguard the future.
CBI Chief Economist Rain Newton-Smith said: “It’s a tough set of numbers to digest. The war in Ukraine, a global pandemic, ongoing strains on supply chains – all of this before Brexit – have proven to be a toxic recipe for UK growth.”
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“The bottom line is that the outlook for UK exports is much worse than that of our global competitors. This needs to change for the better. ‘Business and government must work together to seek development on a global scale,’ said he added.
In a separate warning, the CBI said the UK was heading into a “domestic recession” in which people’s spending would fall from the second quarter of this year to 2023. It said it could leave the whole of the economy on the “edge of a crisis”. recession”.
(With agency contributions)
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