Warning: Recession may come in UK, no hope of recovering soon, what will be affected on India?
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Bank of England has issued a big warning. This bank has said that this year the United Kingdom (UK) can go to the recession and it is unlikely to recover by 2023. Inflation is being said to be the real reason for the recession. To bridge inflation, the Bank of England has increased the interest rates from 1.25 percent to 1.75 percent. The increase in interest rates further strengthens the possibility of recession. According to Bank of England, the longest phase of recession will be for the UK which can go by the end of the year 2023. Until the country recovers from the economic crisis, the impact of the recession can remain. However, a good indication is that like the previous recession, the crisis this time will not be as frightening.
Bank of England believes that the economic crisis will begin in the next three months which may continue till the end of 2023. Is. The recession of 2008 did not last as long as it is being told this time. However, the situation will not deteriorate as last time. The big role in this is being told of Russia-Ukraine War. The prices of gas in the UK are continuously increasing because the supply of gas in this entire area has been disrupted due to the war. Due to this, inflation is increasing, which is being pushed into recession the entire economy.
UK people have to spend the most expenses to meet their energy needs. Gas -based expenses are constantly seeing a boom. According to an estimate, every family of UK is spending about 300 pounds per month. Comparing from a year ago, people have to spend 3 times more on needs like gas. This will increase more inflation in future times. Inflation in the UK is expected to reach 13 percent, which is a record of the last 42 years. By the end of this year, the UK inflation rate can reach 13 percent.
Due to the Russian-Quaraine War, there is a big jump in electricity and gas bills. People's income has reduced due to which the economy of the UK is shrinking. Almost all European countries have helped Ukraine in the Russian-Ukraine war and have been laughed against Russia. In this resentment, Russia has reduced the gas supply of European countries greatly. If the situation does not improve further, the supply of gas can stop. Due to the supply of supply, there is a steady increase in wholesale prices. The general public is suffering due to increasing gas or oil expenses because gas companies are compensating it with people.
The matter is not just the gas. Petrol and diesel rates are also touching the sky, which has increased the price of food items. Inflation is already going on and the recent gas price hike has done ghee work in this fire. Bank of England believes that in the coming time, the rest of the European countries can also face a severe crisis with the UK. Recently, the Bank of England has increased the interest rates for the sixth consecutive time, which shows that there is a huge pressure to control inflation. Due to increase in interest rates, loans are becoming expensive, due to which people are hesitant to take loans. Due to this, the power to spend people is being reduced. And this is also the reason for the recession.
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