According to the Governor of the Bank of England, the weak growth potential of the British economy is a cause for concern. Andrew Bailey, who visited north-east England on Monday, told regional news portal Chronicle Live that he found the slowdown in activity on the supply side of the economy particularly worrying.
In Bailey’s statement on Monday, as a precedent, the Office for Budget Responsibility (OBR), the organization that prepares the UK government’s official forecasts and monitors responsible budget policy, significantly weakened its long-term estimates of the UK’s growth performance. Economy. Dar Al-Analyz, which operates as an independent research workshop, announced the following:
It expects an increase of 0.7 percent by 2024 and 1.4 percent by 2025. In the institute’s previous forecasts, the growth forecast for these two years was 1.8 and 2.5 percent, respectively.
According to the company, the significant deterioration in expectations is due to pressure on real wages, rising interest rates and cuts in government support. According to calculations by the Office for Budget Responsibility, cumulative real growth for the period between 2023 and 2027 is expected to be about 2.4 percentage points lower than expected in the previous estimate, given that estimates of the potential increase in emissions are also weak.
As expected by the analyst’s home in this environment
Even in the 2024-25 budget year, Great Britain’s standard of living will be 3.5% lower than before the coronavirus pandemic.
At the same time, the Governor of the British Central Bank emphasized in his statement on Monday: However, it will be too early to talk about whether it is possible to start lowering the key interest rate of the Bank of England in the foreseeable future, because first, inflation must slow to the Central Bank’s target level. It is 2%.
