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Britain resilient despite high interest rates and stagnant global growth

britain economy resilient despite global shocks
© Samuel Pollard

Britain’s resilience to economic shocks has surprised many over the past year including the IMF.

Having outpaced Germany and France, which are dragging the eurozone into recession, the UK is still making headway post-pandemic despite global economic uncertainty.

Recent statistics showing that the unemployment rate had edged up to 4.2% was still among the lowest in advanced economies.

Coupled with the fact the UK has recently upgraded its own growth forecast and emerged stronger from the pandemic than previously thought, the economy still retains some momentum – although high interest rates and record tax levels are taking their toll.

Having exited from the European Union’s single market, over the past couple of years, Britain has struggled to forge its own path beyond the rigid borders of European integration and the single market. However, as time moves on, Britain is adapting and businesses are learning to be more flexible. Disruption however will remain for years and it is still too early to judge whether Brexit has been a success.

With recent trade deals signed in the Indo-Pacific region and a possible fully fledged free trade agreement on the horizon with India, there’s room for optimism as Britain forges new trading relationships with some of the world’s largest economies.