London based Journalist and expert Sameh Habeeb said that UK economy will face a number of challenges due to international inflation, high prices of shipping and slowing economies around the world. Despite the end of COVID-19, restrictions the UK economy faces a tough start to 2022.
Meanwhile, Brexit impact can still be seen in the city and already affected SMEs and business in general.
Sameh Habeeb added, “While COVID-19 infections are down sharply, the Bank of England expects quarterly output to be back to pre-pandemic levels by the end of March. The rise in inflation, meanwhile, is expected to be faster than it has been in more than a decade, hitting a record high of 5.5% in January. The rise is also expected to hit a new high of 5.2 percent in April, as domestic power tariffs will be soaring. The Bank of England warns that despite the end of COVID-19, the United Kingdom economy will continue to experience a materially weaker 2022.”
“The reduction in overall trade with the EU is a worrying sign for the UK. Despite the end of COVID-19, British exporters are struggling to keep up with the global demand for manufactured goods and are losing market share.
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Moreover, introducing fresh trade barriers is causing British businesses to struggle to remain competitive. Hence, the government is focusing on strengthening domestic production and reducing the reliance on imported goods.” Said Sameh Habeeb
Despite the end of COVID-19, the UK economy will still face a challenging start to 2022. The UK economy is already suffering from rising prices in December and January. In the final three months of 2018, the UK had the worst monthly GDP fall in the history of the European Union. Nevertheless, despite the end of COVID-19, the country will face a tough start to 2022.
Habeeb said, The annual rate of inflation will reach 7.2% in April. The Bank of England will then introduce a further hike to its main Bank Rate of 0.5% in October. Those changes will have a major impact on households’ finances in the first half of the year and beyond.
The EU’s COVID-19 rest period has made it easier to access vaccines. In Europe, the COVID-19 rest period was an exception. The end of the rest of COVID-19 in March 2020 will make the UK’s GDP growth rate slower than the EU average.
Sameh Habeeb said that the UK economy remain strong and one of the top 10 in the world and will achieve recovery sooner or later. He added that the Government must give me opportunities for SMEs and nee start ups. He also added that, the Government must ensure some good packages to push these companies which will help economy recover on local and national levels.
Source: Mid-Day
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