A decline in purchasing power due to inflation and a surge in electricity costs threatens the UK with a two-quarter decline in gross domestic product, The Guardian reports.
According to analysts, even if the United Kingdom manages to avoid a recession, the British economy is awaiting very “disappointing” growth.
She noted that the British economy is heading into a recession this summer, amid the worst decline in household income since the mid-1950s, and a decline in consumer spending due to high inflation.
British economists have warned that the slowdown in economic growth after the Corona virus pandemic, the rise in the cost of living after the start of the Russian special operation in Ukraine and the imposition of sanctions against Russia, may lead to a decline in the country’s gross domestic product for two consecutive quarters (two quarters of the year), that is, to an economic recession.
The newspaper also indicated, quoting experts, that the British economy grew in February at a lower level than expected, and this came in light of inflation in the same month reaching its highest level since 1992.
Experts expect that the UK’s gross domestic product will grow by about 1% in the first quarter of 2022, but in the summer the kingdom’s economy is expected to contract.
It is noteworthy that global food prices began to rise since the beginning of 2021, as a result of the irresponsible policy pursued by Western central banks during the past years, as they deliberately pumped tens of trillions of unsupported dollars, euros and pounds sterling into Western economies, which fueled inflation.
Inflation has worsened recently with Western countries, including the European Union and the United States, imposing unprecedented sanctions on Russia, which is one of the world’s leading producers of energy resources and wheat exporters.