British Businesses Worried About the Possibility of an Economic Recession in 2020 - Forex News by FX Leaders
British Businesses Worried About the Possibility of an Economic Recession in 2020

British Businesses Worried About the Possibility of an Economic Recession in 2020

Posted Tuesday, January 14, 2020 by
Arslan Butt • 1 min read

A recent survey by trade finance provider Stenn reveals that nearly half of British businesses anticipate the UK economy to slip into a recession this year. Nearly one third of businesses expect the economy to contract by as much as 4% in 2020.

The outlook remains almost just as bleak for the global economy, with 37% of companies surveyed expecting either a recession or some kind of financial crisis worldwide this year. Almost two out of three firms highlighted geopolitical tensions, trade tensions, Brexit and regional instability as leading risks to business in 2020.

The second most pertinent business risks include rising environmental concerns and climate change, followed closely by changes in consumer behavior like an increased preference for online shopping. Brexit concerns have abated among businesses after BoJo’s victory in the recent elections and his success in getting the Brexit Bill ratified.

However, businesses remain concerned that the prolonged uncertainty surrounding Britain’s exit from the EU could continue to impact business investment and drive a contraction in the economy this year. Recently released official data showed a surprising contraction in the economy by 0.3% during November 2019.

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About the author

Arslan Butt // Index & Commodity Analyst
Arslan Butt is our Lead Commodities and Indices Analyst. Arslan is a professional market analyst and day trader. He holds an MBA in Behavioral Finance and is working towards his Ph.D. Before joining FX Leaders Arslan served as a senior analyst in a major brokerage firm. Arslan is also an experienced instructor and public speaker.
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