Inflation to fall sharply and recession will be shallow

The recession is a shock built in Russia, and is a global issue, but the UK’s economic resilience to handle this shock was severely damaged by Brexit. This is the view of Graeme Chaplin, west Midlands and Oxfordshire agent for the Bank of England, who argues that while Covid depressed the economy by some 2%, that was off the back of a 4% hit from Brexit. But there are two notes of positivity. Chaplin’s view is that the recession will be shallow, and that it will be tempered by inflation which is expected to fall sharply next year. At the same time, the semiconductor drought that has hit so many sectors of industry could be about to become a flood. There are still plenty of raw materials challenges, but that would be one less thing to worry about.

With best regards

Mark Simms, Editor
editor@machinebuilding.net