UK Economy: Shortly before, India has surpassed Britain and achieved the status of the world’s fifth largest economy. Great Britain is currently witnessing the biggest phase of economic slowdown and the economic decisions of its newly elected Prime Minister Liz Truss have seen such an impact that the threat of economic recession is looming. We are telling you here what the whole matter is.
What is the matter in Britain – why was the estimate of the pace of economic growth reduced
The economic policies of the Liz Truss government of Britain received a lot of applause in the beginning because they came in the corporate tax. Announced deduction, also announced exemption in personal income tax. However, Liz Truss did not say that from where the shortfall in the British treasury would be made up by such deductions and from where the money would come to the government. Recently, the result was seen when the condition of the UK bond market turned sour and it came near all-time low.
Liz Truss took U-turn now delayed
Recently, PM Liss of Bitrain took a U-turn on his decisions and withdrew all concessions. Not only this, Liz Truss also sacked his Finance Minister Quasi Quarteng that he failed to handle the situation and there was an atmosphere of chaos in the country. But according to experts, this further reduced the confidence of the market in the Liz Truss government, which is also mentioned in the Goldman Sachs report. In the report, from the weakening of the economic growth rate of Britain to the deteriorating financial condition of the country, there is a complete account of it. Not only this, the attitude towards the British economy has also been said to be negative. Goldman Sachs estimates that the interest rate in the UK will reach 4.75 percent and this will further weaken the pace of economic growth with its GDP.
Goldman Sachs also reduced the forecast for the US economy
Goldman Sachs had cut US economic growth projections for the year 2023 only last month. Recently, for the US economy, veteran economists have written in a note that in 2023, the US GDP may grow by only 1.1 percent, before which it was estimated at 1.5 percent. It is clear that these are signs of increasing the danger of recession and now Goldman Sachs has also indicated danger for the UK economy, which in a way reinforces the signs of economic slowdown of the global giant economy.
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