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THE UK’S GLOOMY ECONOMIC SITUATION

Submitted by christian on Sun, 09/04/2022 - 15:24
  1. Annual inflation is running above 10% due to food and fuel prices leap.The Bank of England anticipates that inflation will jump to 13% as the energy crisis intensifies. Citigroup estimates inflation in the United Kingdom could peak at 18% in early 2023, while Goldman Sachs warns in could reach 22% if natural gas prices remain elevated at current levels.
  2. Frustration over the rising cost of living has compelled hundreds of thousands of workers who staff ports, trains and mailrooms to go on strike.
  3. Skyrocketing cost of energy could unleash a wave of business closures and force millions of people to choose between putting food on the table and heating their homes this winter. People will become destitute and cold-weather deaths will rise unless something is done fast.
  4. Energy bills for households will rise 80% to an average of £3,549 (€ 4, 104) a year from October. Analysts say the household price cap could rise to more than £5,000 (€ 5,783) in January and jump above £6,000 in April (€ 6,939).
  5. The Bank of England has warned the UK economy will fall into a recession in the coming months.
  6. Goldman Sachs also forecast that gross domestic product could drop 3.4%
  7. The crumbling British pound could exacerbate problems, making it more expensive to import energy and other goods, pushing inflation even higher.
  8. Exports and imports will be about 15% lower in the long run than they would have been if the United Kingdom stayed in the EU.
  9. The country’s debts are now almost 100% of its GDP
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THE UK’S GLOOMY ECONOMIC SITUATION

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