Britain faces mounting recession concerns as new data reveals weak growth and rising unemployment ahead of its autumn budget. Nigel Green, chief executive officer (CEO) of the deVere Group, issued this warning. Official figures show the United Kingdom (UK) economy grew just 0.1% last quarter while unemployment rose to 5%, a four-year high.
This combination of stalling growth and a softening jobs market suggests the economy is entering a fragile phase. Green stated that a 0.1% expansion rate indicates the economy has almost no forward momentum. He warned that such weakness undermines confidence, delays investments, and increases earnings pressure. The rise in unemployment from 4.8% to 5% represents another serious concern, as the direction of the trend matters more than the immediate magnitude.
Green explained that once households experience income strain, the slowdown impacts consumer spending, borrowing, and business expectations. He said recession fears are escalating because multiple negative signals are aligning simultaneously. Weak economic output, higher joblessness, and anticipated tax increases create a combination that investors cannot ignore.
A severe cyberattack that halted production at Jaguar Land Rover (JLR) for weeks contributed to a contraction in September. The incident caused a drop of over twenty-five percent in automotive and trailer output, which was severe enough to reduce the nation’s monthly gross domestic product (GDP). Green noted that such shocks create ripples across supply chains and local economies, gaining more significance when underlying growth is already thin.
Investor attention now focuses on the Chancellor’s upcoming budget statement, expected to be one of the most austere in recent years. Analysts widely predict significant tax increases at a time when growth and employment are under clear pressure. Green said the budget’s timing could define the UK’s economic direction for much of next year. He added that fiscal tightening during a slowdown multiplies negative effects, causing businesses and consumers to become more cautious.
The deVere CEO concluded that savers and investors must avoid complacency. He advised reassessing exposure to assets linked to domestic UK demand and ensuring portfolios are built for resilience. Green emphasized that acting early with disciplined advice is better than reacting late to a shifting economic landscape defined by slower growth and difficult fiscal choices.
Source: newsghana.com.gh
