China News Service, December 6th, a comprehensive report, the Confederation of British Industry (CBI) warned on the 5th that due to the pressure on the economy due to the "stagflation" combination of rising inflation, negative growth and plummeting business investment, the UK will be in a long-term crisis in 2023. A year of recession.
Britain's largest business group said gross domestic product (GDP) would shrink by 0.4% in 2023, down from a forecast of 1% growth set in June.
The business group said inflation may have peaked, but warned it would remain well above the Bank of England's 2% target, reaching around 3.9% by the end of 2023, with consumer spending falling throughout the year.
The group also said productivity would remain weak over the next two years and be around 2% below pre-pandemic trend levels by the end of 2024.
Britain has one of the weakest economic prospects among the developed countries covered by the CBI forecast.
The group made a particularly gloomy forecast for business investment.
Business investment will start to decline from the middle of next year, the group said.
The group called on the UK government to "unlock" business investment through capital subsidies and regulatory reform, and wanted the government to boost business investment with a permanent investment tax incentive.
The Confederation of British Industry has also warned that if the government does not do something, the UK may enter a decade of growth failure.