Jakarta, CNBC Indonesia – Britain is in danger of recession. This is due to the surge in prices which has an impact on the country’s economic growth.
Strong increases in energy tariffs are known to have hurt the demand for electricity and that leaps in material costs have hit the construction sector. Official data on Monday (12/9/2022) showed with inflation at a 40-year high of more than 10%, gross domestic product (GDP) has increased by 0.2% since June.
In the three months to July, UK GDP remained flat compared to the previous quarter. Some economists said today’s data showed that the economy could be on track to shrink in the July-September period after a 0.1% contraction in the April-June quarter.
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“This means that the UK is entering a technical recession for the first time since the blocking restrictions ended,” said Jake Finney, an economist at PwC. Reuters.
Paul Dales of Capital Economics said the same thing. He said the small rebound in real GDP in July suggested that the UK economy had little momentum and was probably already in recession.
In August, the Bank of England (BoE) predicted a recession for the fifth largest economy in the world that will last from late 2022 to early 2024. This is largely due to the blow to the standard of living prices of the world. fueled by the war in Ukraine.
Meanwhile, over the weekend, the new British Prime Minister (PM) Liz Truss plans to pay out £ 50 billion (approximately Rp 2.571 trillion) energy subsidies. This is to protect households and businesses from rising energy bills.
The government said it was making plans to freeze the average household’s annual energy bill of £ 2,500 over the next two years. This means that bills have increased by 27% from current levels.
Even so, residents are believed to pay less than £ 3,549. This is cheaper than previous calculations because the rates have increased by 80%.
Quoted by Financial Times, the subsidy will consist of £ 90 billion to support families. There is also £ 60 billion for businesses.
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After the United States, it is now the turn of Great Britain threatened by the recession
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(tfa / sef)
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