The UK faces a ‘lost decade’ of growth if no action is taken to address declining business investment and staff shortages. The leading Confederation of British Industry (CBI) warned of this yesterday in its economic forecasts.
The UK is in stagflation. There is skyrocketing inflation, negative growth, falling productivity and business investment. Companies see potential growth opportunities, but due to a lack of favorable prospects, they will stop investing in 2023, the think tank says.
And this leads to a lost decade if no action is taken. Three-quarters of companies have trouble finding the people they need. And so the think tank is pushing for changes to the permanent tax measures, which are expected to amount to 60 billion euros by the end of the decade to stimulate investment.
Additionally, the CBI supports a more flexible immigration system. The CBI expects the UK economy to contract by 0.4% in 2023, a significant downward revision from its 1% growth forecast in June. The economy is not expected to recover to pre-Covid size until Q2 2024.
Source: BNR
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