The combination of a number of shocks could leave UK incomes permanently lower.
12 May 2022
Output in the UK is falling as consumers crippled with a cost-of-living crisis not seen for many decades retrench. February saw no growth whatsoever and March saw a fall in growth of 0.1%. Overall, for the first quarter, the UK economy grew 0.8%, compared to the previous quarter’s growth of 1.3%. The outlook looks even more depressing for the UK with the Bank of England governor stating last week that the likelihood is for a contraction of 0.25% next year. Even more depressing is a report out by the National Institute of Economic and Social Research which says that the combination of infamous shocks: Brexit, Covid-19 and the Russian invasion of Ukraine affecting fuel prices is set to leave the incomes of people in the UK permanently lower.
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The information in this document is given for information purposes only and does not qualify as investment advice. Opinions and assessments contained in this document may change and reflect the point of view of GAM in the current economic environment. No liability shall be accepted for the accuracy and completeness of the information. Past performance is not an indicator for the current or future development.