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Boris Johnson on a construction site tour (2020): This year there should still be an increase of 3.6 percent - after the corona slump in 2021
Photo:
JEREMY SELWYN/ AFP
Boris Johnson is used to bad prospects.
But they don't just affect the quarrels within his conservative party.
The British Prime Minister is now increasingly struggling with the economy.
Growth has already cooled off this spring, and companies and consumers are less and less confident that the state will be able to create such framework conditions that the economic trend will reverse again.
According to the current growth forecast by the Organization for Economic Cooperation and Development (OECD), the post-Brexit economy will still grow by 3.6 percent in 2022.
In 2023, however, the economy in the kingdom will come to a standstill: zero growth.
If things actually turn out as predicted, only Russia – with a minus 4.1 percent in gross domestic product – could do worse than Great Britain among the 20 leading economies (G20).
High inflation + rising interest rates + rising taxes = toxic?
According to the estimates of the Industrial States Organization, the development of inflation will be particularly decisive for the country.
However, the people in Great Britain will probably still have to struggle with the sharp rise in consumer prices in the coming year.
Real wages are also likely to fall further.
According to the Financial Times, Laurence Boone, chief economist at the OECD, identified several particular weaknesses in the British economy compared to other G20 countries: The UK is unique because it is struggling with high inflation, rising interest rates and rising taxes at the same time have.
"The sensitivity of the manufacturing sector in relation to the global supply chain and probably also Brexit play a role," Boone is quoted as saying by the newspaper.
According to the report, she also acknowledged that not every factor could be deciphered in detail.
Read an in-depth interview with Boone here
: »Food isn't getting where it's needed«
In any case, it should be problematic that the British economy is considered to be battered by the numerous crises of recent years.
The growth now forecast by the OECD for this year can largely be seen as a recovery from the corona crisis last year.
In addition, Brexit is changing the economy in Great Britain and is causing a shortage of skilled workers, which is affecting nursing homes, petrol stations and supermarkets.
According to the Guardian, the British Treasury said: "We know that these forecasts will worry many people." The country "cannot be completely protected from global pressure", but the British economy is solid and the people are should be supported with the cost of living.
Apr