The UK has already entered a recession, the economy minister admits
EFE.- Britain’s finance minister announced Thursday that the Office for Budget Responsibility (OBR), which oversees the UK’s public accounts, estimates that the country has entered recession and British inflation will reach 9.1% this year.
In a statement in Parliament’s House of Commons presenting the Conservative government’s fiscal plan, Hunt noted that the Balance Sheet Office expected inflation to reach 7.4% in 2023.
The minister noted that the country’s GDP will grow by 4.2% in 2022, then decline by 1.4% in 2023, rise by 1.3% in 2024, 2.6% in 2025, and 2.7% in the following year.
The Balance Sheet Office, which has linked the sharp increase in inflation to rising energy prices globally, calculates that the UK unemployment rate will rise from 3.6% currently to 4.9% in 2024 before falling to 4.1% the following year.
Read: British inflation has reached its highest level in 41 years
The United Kingdom will borrow 177,000 million pounds (201,780 million euros) this financial year (from April to April), which is equivalent to 7% of British GDP, while in 2024 it expects to reach 140,000 million pounds. Sterling (159,600 million euros). —5.5% of GDP—.
The UK’s accumulated debt will start to fall from 97.6% in the 2025-26 financial year to 97.3% in 2027-2028.
In his long-awaited parliamentary statement, Hunt said the executive has three key pillars to tackle the economic crisis: financial stability, growth and defending public services, while it is determined to protect the most vulnerable, including pensioners.
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He added that inflation is the “enemy” of stability, insisting that it hurts low-income people and can cause social unrest.
Hunt stressed that the United Kingdom is not the only country facing problems due to the sharp increase in inflation, as Germany and Italy also suffer from similar problems.
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