He United Kingdom believes that will avoid entering a technical recession this year -two consecutive quarters of economic contraction-, and that will reduce year-on-year inflation by the end of 2023 until it is in the 2.9%According to the British Chancellor of the Exchequer, jeremy hunt.
Unveiling in Parliament the state budget for the next fiscal period, which begins in April, Hunt said these calculations have been made by the Office for Budget Responsibility (OBR), which oversees the country’s public accounts. .
British year-on-year inflation, which is currently in the 10.1%will be able to drop by the end of 2023 to a third of how it was at the end of last year, in the 10.7%.
“Today the Office for Budget Responsibility anticipates that, due to changing international factors and the actions it takes, the UK will not now enter a technical recession this yearHunt said as he presented his budget in Parliament.
The British is the only economy in the Group of Seven that has not yet recovered its pre-pandemic sizehaving already suffered a decade of near-stagnant revenue growth before the COVID-19 hit to activity and a rebound in inflation, which remains above 10 percent.
“Despite continued global instability, the OBR reports today that UK inflation will decline from 10.7% in the last quarter of last year to 2.9% by the end of 2023,” Hunt said.
Hunt has ruled out that his budget plan includes a big spending or big tax cuts.
Many economists think that you probably want to set aside some of fiscal strenght for when the national electionsexpected in 2024. The opposition Labor Party is well ahead of the ruling Conservatives in opinion polls.
Rather than spending big now, Hunt is expected to use his budget speech to address some of the root causes of Britain’s economic woes, such as the post-pandemic shrinking labor market.
(With information from EFE and Reuters)
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Source-www.infobae.com