On Monday (10), Fitch Ratings, an international rating agency, lowered the growth rate of British GDP in its latest economic outlook report.
Specifically, Fitch predicts that Britain's GDP will decline by 1% in 2023, while the predicted value in September will still decline by 0.2%.
In other words, Fitch lowered the UK's GDP growth rate by 0.8 percentage points in 2023.
It is worth mentioning that just last week, another international rating agency, Standard & Poor's, made a similar move and forecast.
In its latest statement, Standard & Poor's predicted that in 2023, Britain's GDP will shrink by 0.5%, which is "significantly" lower than the previously predicted growth of 1.0%.
In addition, Standard & Poor's also predicted that in 2024 and 2025, British GDP will increase by 1.4% and 1.6% respectively.
Then the question comes: why do the two major international rating agencies lower the UK's GDP growth forecast for next year?
In this regard, Standard & Poor's explained that this is mainly due to the intensification of the European energy crisis and the soaring energy costs in the UK, which may directly push up the inflation rate this winter, while consumer spending is expected to shrink, which will eventually lead to a moderate "technical recession" in the UK economy (GDP has shrunk for two consecutive quarters).
As Wang Ye said, the article "Britain can't stand it: in three months, 5,629 enterprises went bankrupt! There may be a power outage this winter? As reported in the article, the current energy crisis in Britain is also very serious. Even the British National Grid warned that if electricity cannot be imported from Europe on this day, or there is not enough natural gas to generate electricity, then British families and businesses may face planned power outages.
To make matters worse, British companies are now "unable to hold on".
According to the latest data released by the National Bureau of Statistics (ONS), in the second quarter of this year (three months), the number of bankrupt companies in the UK reached 5,629, setting a new high since the third quarter of 2009.
In this regard, the analysis commented that with the "bankruptcy tide" of British enterprises, the British economy may be hit hard.
what do you think? What do you think will happen to the British economy this year? What will happen to British GDP next year?