The UK economy will contract in 2023 and risks a ‘lost decade’.
“Britain is in stagflation – with runaway inflation, negative growth, falling productivity and business investment. Businesses see potential growth opportunities but … the headwinds are causing them to stop investing in 2023,” said Tony Danker, director general of the CBI.
The CBI’s forecast is down sharply from its last forecast in June, which called for 1.0% growth in 2023, and it does not expect gross domestic product (GDP) to return to its pre-COVID level until mid-2024.
Source : Reuters.