Jakarta –
Growth British economy in the third quarter of 2022 it contracted by 0.2%. This was due to the rising prices of household goods such as food, fuel and energy caused by the outbreak of the Russian and Ukrainian wars.
Quoted by the BBC, a country enters a recession if its economy contracts for two consecutive quarters. England is expected to be one of the countries mired in recession.
The Bank of England has said that this economic pressure will occur in the future. During a recession, companies will experience a decrease in income, thus potentially increasing the number of unemployed.
So even people who just graduated from college will have a harder time finding a job in a recession. This means that the government will also collect less taxes. Even if this tax is used for community health work and education.
The central bank expects this recession in England to set a record as the longest recession since the 1920s. Furthermore, the unemployment rate is also expected to double.
Bristol Brewery chief executive Sam Burrows explained to the BBC that business was currently under pressure due to rising raw material prices. “We need people to come to the pub to eat, drink and travel. This will balance our (production),” he explained.
Burrows said he is currently calculating the company’s expansion plans in the midst of current economic conditions. But he is optimistic that the World Cup and Christmas Day will provide fresh air for his business.
“There is pride and positive energy from the World Cup to Christmas,” he explained.
Indeed, the rest of the world is experiencing significant price increases. But the British economy is the worst compared to other big countries.
The UK’s Office for National Statistics said investment in the UK fell sharply and was far below pre-COVID-19 levels. Furthermore, the decline in economic activity in the UK also occurred as manufacturing activity also weakened.
Darren Morgan, director of economic statistics at ONS, said that not only consumers but also producers and sellers are now under pressure due to high prices. Morgan said the market is now facing increased price pressures and energy costs.
Morgan said several companies have taken steps to save costs by switching to energy-efficient equipment and looking for new suppliers.
Furthermore, the additional holiday for the funeral of Queen Elizabeth II also contributed to the weakening of the British economy. This is because many businesses are closed or the opening hours are shorter. In September alone, the UK economy contracted by 0.6%.
Watch a video “So the British Prime Minister, Rishi Sunak, wants to prioritize economic improvement“
[Gambas:Video 20detik]
(kil/zlf)
