Prime Minister Rishi Sunak addresses British employers at their annual conference on November 21, 2022 in Birmingham (AFP / Oli SCARFF)
The United Kingdom is “in full stagflation”, according to the director general of the CBI, the main employers’ organization in the country which opens its annual conference in Birmingham on Monday.
“We have come together, once again, in extraordinary times. The UK is in the midst of stagflation – hit by runaway inflation and negative growth,” Tony Danker said Monday at the opening of this Confederation conference. of British Industry (CBI).
“We know how to fight inflation. We know how to fight recession. But we don’t really know how to fight them together,” he added.
The United Kingdom has entered recession and its gross domestic product is expected to contract by another 1.4% next year, predicts the OBR, the public budget forecasting body. Inflation is at 11%, a record for four decades.
“The only thing that’s holding up growth is the rise in hours worked, thanks to rising immigration,” Danker told a packed room at the Vox conference center in Birmingham.
Prime Minister Rishi Sunak is attending the conference in Birmingham, central England, on Monday, where he will follow up on Mr Danker’s speech.
The CBI boss has identified three priorities for economic growth. The government must, he said, “unlock private sector investment”. He must “change the economic rules” to overcome the political obstacles. Companies must they “show even more ingenuity”.
He also calls for relaxing immigration rules. “Let’s have economic migration in the areas where we’re not going to have the workers or the skills at home anytime soon. In return, let’s make those visas fixed term,” he said.
“Remember that GDP is a simple multiplier of two things: people and their productivity. And it’s time to be honest: we don’t have the people we need, nor the productivity,” he said. he insisted.
Mr Danker also called on Monday to boost the country’s international trade, “the lowest percentage of GDP in the G7”, by signing an agreement around the dispute over the Northern Ireland protocol, to unlock the potential of the agreement of the Brexit with the EU.
© 2022 AFP
Did you like this article ? Share it with your friends with the buttons below.
