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Business

What do you need to know about the UK economy in 2022?

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Britain, the 2022 budget law – higher wages and public investment to forget Brexit. The budget maneuver provides for an increase in funding for all ministries. Major investments in health, school, and public transport. 1.5 billion pounds for museums and sports facilities.

Let’s leave Brexit behind and look with confidence at money saving tips and the future because the elements for doing so are there. This is the message that the British Chancellor of the Budget Rishi Sunak addressed to the country and the Parliament by presenting the budget law.

UK economic forecasts

A financial company, according to personal finance management in uk, which has among its assets the increase of 6.6% of the minimum hourly wage brought to 9.5 pounds (11.2 euros) and the end of the block to pay increases in public administration. In support of revenue, there is also a £ 2 billion (€ 2.3 billion) intervention to reduce the impact on wage increases for low-wage workers.

Despite Brexit and the pandemic, the UK predicts a triumphant 2022 (at least according to their budgets). The good prospects lead the government to announce huge public spending, which worries its ranks in the face of inflation. Women business success will also stand out.

The 6.5% forecast was close to the International Monetary Fund’s estimate that Britain’s gross domestic product will rise by 6.8% in 2021, the fastest of the Group of Seven countries after the country suffered the most. decrease in the G7 in 2020.

OBR estimates that gross domestic product will increase by 6.0%, 2.1%, and 1.3% in 2022, 2023, and 2024, Sunak said. In March, OBR forecast growth of 7.3%, 1.7%, and 1.6% over the next three years.

The economy was expected to return to its pre-pandemic size by the end of the year, compared to the March forecast for the second quarter of 2022.

OBR has lowered its forecast for the long-term “scars” of the economy to 2% from a previous estimate of 3%.

Sunak acknowledged the risks posed by rising inflation, many of which are attributed to problems in the global economy. But it has announced new measures to reduce the shortage of truck drivers, which has led to problems in the supply chain.

Borrowing costs could start to rise next week as the Bank of England announces its November policy decision amid an inflation rate about to reach 5%, more than double its target.

As a result, the Bank of England expects the UK to return to pre-pandemic economic levels at the end of 2019. This is a quarter earlier than previously estimated and a faster recovery than the UK’s GDP growth forecast. 4.0% European Union 2021. Of course, it must be remembered that an economic reopening can only provide a single impetus for growth. High-frequency data, which measures an average of indicators, including mobility, trade, and trade data, shows that the UK economy is recovering faster than its EU neighbors.

The Bank of England’s upgrade marks the first step in adjusting policies, raising the likelihood that borrowing costs will be higher by mid-2023, from the current low of 0.1%. In line with market expectations, the Bank of England has reduced its bond market support by £ 1 billion to £ 3.4 billion a week. The central bank remains committed to buying 150 billion pounds of fixed income by 2021, accompanied by low-interest rates.