Bank of England to push UK into recession by year end says Bloomberg Economics. Reaction

by | Jun 27, 2023

The Bank of England will push the UK into recession by the end of the year, as its battle to curb the worst inflation of any G-7 economy intensifies That’s according to the latest analysis from Bloomberg Economics which was released this morning. Bloomberg economists say a shallow — but protracted — downturn is the price of taming an inflation rate that remains stubbornly close to double digits.

Reacting to Bloomberg’s statement today, Arun Singh, Global Chief Economist at Dun & Bradstreet comments:

“While the probability of a recession is concerning, the discussion regarding further economic hardship is going on for quite some time. However, UK economic prospects are contingent on the movement of multiple factors – such as inflation & interest rates and can change quickly. For UK businesses, it’s now a case of retaining customers by adapting pricing and supply chains accordingly; as our survey found, a quarter of businesses believe weakening customer demand is the second biggest risk to their operations this year. If this trend continues, businesses may struggle to keep their prices competitive while effectively managing their costs.

“Businesses must be determined in the current climate to find innovative ways to serve their customers, maintain productivity, and increase competitiveness. When businesses use high-quality, data-driven insights to gain a competitive advantage, this desire for adaptability and resilience is evident. Such insights are critical for identifying key competitiveness drivers and developing effective strategies for navigating challenging circumstances in a highly digitised global economy.”

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