The UK economy is bracing for a challenging period as the British Sage, an influential economic forecasting group, predicts zero growth in the near future. This grim outlook raises alarms over persistent inflation and rising living costs, adding pressure on households and businesses alike.
Economic Stagnation Looms
According to the latest analysis, the British Sage has downgraded its GDP growth forecast to 0%, citing weak consumer spending, sluggish business investment, and global economic uncertainties. The group warns that without significant policy intervention, the UK could face prolonged stagnation.
Inflation and Household Struggles
High inflation remains a critical concern, with essentials such as food, energy, and housing becoming increasingly unaffordable for many. The British Sage highlights that wage growth is failing to keep pace with rising prices, squeezing disposable incomes further.
Businesses Under Pressure
Small and medium-sized enterprises (SMEs) are particularly vulnerable, with many struggling to absorb higher operational costs. The lack of economic growth could lead to reduced hiring, investment cuts, and even closures in some sectors.
Government Response Needed
Economists urge the government to take decisive action, including targeted fiscal support and measures to boost productivity. Without such steps, the risk of a deeper economic downturn grows.
The British Sage's forecast serves as a stark reminder of the fragile state of the UK economy, with recovery prospects looking increasingly uncertain.
