European economic growth is weak! The UK may fall into negative growth!
European economic growth is weak! The UK may fall into negative growth!
Recently, the European Commission released its 2023 Autumn Economic Outlook Report, which once again lowered the economic growth expectations for the EU and the Eurozone this year and next.
In addition, according to data recently released by the British Office for National Statistics, the initial value of UK GDP in the third quarter was 0%, which means that UK GDP in the third quarter has stagnated.
EU lowers economic forecast
According to the forecast in the Autumn Economic Outlook report, the GDP growth rate of the EU and the Eurozone will both be 0.6% in 2023, which is 0.2 percentage points lower than the forecast value in the Summer Economic Outlook report.
In 2024, the EU economy is expected to grow by 1.3% and the euro area by 1.2%, both 0.1 percentage points lower than previously expected.
Weak economic growth in the UK is a long-term problem. Since the UK's "Brexit", UK-EU trade has declined, causing instability in the external market. At the same time, there is insufficient development in emerging markets and lack of new momentum.
The Bank of England predicts that the probability of a UK economic recession in 2024 is 50%.
At the same time, due to high inflation and declining living standards, strikes occurred one after another in various industries in the UK. British railway workers have gone on strike several times this year.
UK economy stalls
According to data recently released by the British Office for National Statistics, the UK consumer price index fell to 4.6% year-on-year in October from 6.7% in September, hitting a two-year low.
Recently, the British government announced that it will provide 4.5 billion pounds in funding for the manufacturing industry and increase investment in eight industries in the UK. HM Treasury said the funding will be available for five years from 2025, providing long-term certainty for investment in the industry.
Among them, more than 2 billion pounds (approximately 2.49 billion U.S. dollars) will be spent on the automotive industry, and 975 million pounds (approximately 1.22 billion U.S. dollars) will be used on aerospace to support the manufacturing, supply chain and development of zero-emission vehicles, as well as on energy conservation and Investments in zero-carbon aircraft equipment.