Queen’s death tipping point for UK’s economy – October 2022
The mourning of Queen Elizabeth II could be the blow that sends the United Kingdom’s already-strained economy into a “technical recession”, causing concerns about the effect of a national holiday on the country’s businesses.
The forecast follows economic data released earlier this week, which showed the UK’s GDP growth was weaker than expected in July and that the September GDP is to drop 0.2% lower than it would have been due to the closure of shops and restaurants. This is expected to cost the economy ‘billions’ and be extremely costly in resulting in a day’s lost productivity. GDP grew slightly by 0.2% in July after a decline of 0.6% in June, driven by a decline in the service, production, and construction sectors.
Alongside the higher cost-of-living and energy crisis issues, the British economy has already contracted in the second quarter of the year where another consecutive quarter of decline would push the country into a recession, by some economists’ definitions. In respite, Prime Minister Liz Truss announced a massive aid plan for British households and businesses in the face of soaring energy costs, intended to result in a two-year freeze on energy prices for individuals and a six-month freeze for businesses and public institutions.