<p>This is grim reading from the UK’s Confederation of British Industry (CBI).</p><ul><li>Forecasts GDP to contract 0.4% in 2023</li><li>Unemployment to peak at 5.0% in late 2023 and early 2024, up from 3.6% currently</li><li>”Britain is in stagflation – with rocketing inflation, negative growth, falling productivity and business investment. Firms see potential growth opportunities but … headwinds are causing them to pause investing in 2023″</li><li>”We will see a lost decade of growth if action isn’t taken. GDP is a simple multiplier of two factors: people and their productivity. But we don’t have people we need, nor the productivity”</li></ul><p>Via <a href=”https://www.reuters.com/world/uk/uk-economy-shrink-2023-risks-lost-decade-cbi-2022-12-05/” target=”_blank” rel=”nofollow”>Reuters, more here</a></p><p>Brexit closed free access to a 300mn people market, a sad headwind for UK industry and workers. </p>
This article was written by Eamonn Sheridan at forexlive.com.