The combination of a number of shocks could leave UK incomes permanently lower.
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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