UK set for slowest growth in G7 as Ukraine war hits global economy

Finance & Banking Finance & Banking: In The News
, ,
7

Hi

The IMF are more often wrong than right.

The UK has a very different Economy to others in the G7, we are service not manufacturing based.

In this instance I think the IMF have a point.

Inflation is now a world issue, and when prices rise, the first thing people cut back on is services, they still need to buy manufactured goods, but not Streaming services, meals out etc.

On the positive side, Services are the first thing to recover when Inflation drops.

What we do need to improve things are two changes.

Firstly, forget Global Britain, that is not going to happen.

Back off and spend the money on improving the standard of living for people who live here.

The World can look after itself, our Government needs to look after us.

We do not need two huge, expensive Aircraft Carriers to project our power which would last less than an hour if push came to shove, neither do we need such a huge Overseas Aid Budget.

We also need to reform our Taxation System.

The Government has said that there is £37 Billion a year in uncollected tax, collect it.

It is totally wrong that some can avoid paying Tax when the Supermarket Checkout Worker pays full tax and NI.

There are people on here who live in expensive parts of the UK, they will be paying Inheritance Tax.

The rich do not pay Inheritance Tax, they can afford the lawyers and accountants to avoid it.

Close the loopholes and treat everyone equally.

1 Like
8

Might have to get Compo back to do that!!!

9

Good post Swim, and I’d like to add…Stop buying stuff from abroad and start producing our own again.

10

The economy is now predicted to grow down from the previous forecast made in January next year the UK is expected to have just a near halving from the expected previously. Hmmm

11

It is immaterial whether the IMF are right or wrong, the Tories have made an absolute mess of the economy preferring to blame COVID for all our woes, yes Sunak did some excellent work helping people during the pandemic but there were flaws in his policies but conveniently forgetting the there was major mismanagement during this time with billions being wasted billions that had to be borrowed and now paid back.
Johnsons loves to tell us how employment is high but conveniently omit to mention for the most part thse are low paid jobs, the cost of living crisis will hit the poor, the low paid and vulnerable the hardest the same people who paid the highest price after the 2008 financial crisis.

12

Absolutely.

As for the aircraft carriers, I agree but the one situation where they could be used if necessary is if the Argies should try their luck taking the Falkland Islands again. That was our main problem last time after all. Having said that, I think they are unlikely to try it as they tend to be all bluster.

13

@MrFraggle67 , Yeah, employment is so high that people have to have
Three jobs !!
Donkeyman! :roll_eyes::roll_eyes:

14

Oh, yes of course they did. Poor Chicken Licken was running round shouting that the sky would fall in - silly moo :cow2: And now they’re saying our economy will be the slowest next year? What? That’s after the fastest growth in the G7 2 years ago in the middle of the pandemic, and the 2nd fastest last year (still in the middle of a pandemic). Wow. What a surprise that is.

Totally agree with you here, Swimmy, and I’ve said as much elsewhere only to be always shot down by bleeding heart liberals who think we should be the paymasters of every poor, shitty corner of the world. I mean, just look at the outpourings of vile abuse that was heaped on the Government when Rishi reduced the OAB from 0.7% to 0.5% as a TEMPORARY measure (that equated to a drop from £15B to £10.7B - a sum we still really can’t afford to give away).

2 Likes
15

Update:

It is predicting UK growth will fall to just 0.5% in 2023, much lower than its forecast in April of 1.2%.

The global economy has shrunk for the first time since 2020, the IMF said, hit by the Ukraine war and Covid-19.

With growth stalling in the UK, US, China and Europe, the world “may soon be teetering on the edge of a global recession”, it said.

“We know that people are feeling the impact of rising prices, caused by global economic factors, triggered by the illegal Russian invasion of Ukraine,” a HM Treasury spokesperson said in a statement, adding that help for households included £400 off energy bills plus personal tax cuts worth up to £330 a year.

The IMF has cut its 2022 global growth forecast to just 3.2% and warned the slowdown risks being even more severe.

It said fast-rising prices were to blame for much of the slowdown, with households and businesses squeezed by a combination of higher prices and higher borrowing costs as policymakers raise interest rates to try to counter inflation.

We’re all doomed … :090:

16

Presumably this is the IMF report already mentioned in another thread.

17

According to the BBC anyway…

18

Hi

We are not immune to what is going on in the rest of the world

19

That’s true Swim, but if we stopped buying in foreign stuff and started producing our own it would provide more jobs, more tax into the national purse, and make us less vulnerable. That was the dream that most of us had when we voted to leave the EU.
Propping up a foreign war is sucking the life out of the country as well as making us unpopular with the people who keep our houses warm in winter. We will not win an economic war with Russia, or the Chinese.

20

The word “Update” is significant.

The first line of text is also significant:

This forecast is part of the article linked to in the original post in this thread:

19 April 2022

However, next year, the UK is expected to have the slowest growth in the G7 and across Europe’s main economies, at just 1.2%, a near halving from the 2.3% expected previously.

Your link references that earlier report:
https://blogs.imf.org/2022/07/26/global-economic-growth-slows-amid-gloomy-and-more-uncertain-outlook/

Under our baseline forecast, growth slows from last year’s 6.1 percent to 3.2 percent this year and 2.9 percent next year, downgrades of 0.4 and 0.7 percentage points from April.

I suggest that you follow your own advice to me and follow the link:

21

Unlike you I already have, you’re not saying anything new.

23

Oh dear, a battle of the pedants of google !!
Bring it on!!:+1::grin::grin::grin::+1:

24

Careful, you’ll get flagged and deleted.

25

Ha!Ha! Been there,Done that !!
Nuffin to it !!

26

Hi

The UK is in a transition period, one of our aims of Brexit is to get more of our own working, better trained and better paid.

This not going to happen overnight and will require Government interventions.

We are not going to get things right from the start and the transition will take at least a decade from now.

None of us on here will be around to see the full benefits of this, but our kids and grandkids can benefit.

Sort term we will be in a Global Recession, long term we have the chance to flourish.

27

That is the problem swimmy , will need government intervention !!
If they are serious they would have done something about our fishing
grounds by now,this would have a major effect on the people who most
need levelling up?
What did they do?
They gave the EU another six years before they even start talking about
restoring our rights ??
Fishing is hardly ever spoken about anymore in government circles !!