Almost half of UK Businesses expect there to be an economic recession in 2020, according to research conducted by trade finance provider Stenn Group.
Surveying 250 senior executives at medium – large sized businesses across the UK, the researchers found that there were other concerns to contend with as the New Year progresses:
- One in three of those surveyed believes the contraction could be up to 4%.
- 37% expected to also see a global recession or international global crisis.
- Two thirds ranked increased ‘geopolitical tensions’ as the primary business risk. This included trade tariffs, Brexit and regional instability.
- The second largest perceived risk, at 50%, was climate change and increased environmental concerns.
- Third place on the perceived risk list was changing consumer behaviour at 48%. This included examples such as consumers shopping online rather than in physical stores.
Alongside the statistics, the President of Stenn Group commented that businesses could now begin to plan for the future, with the recent election result being so clear. The continuing doubt over the trade talks with Europe though, may well hamper any confidence returning to the economy.
‘The prolonged uncertainty has been battering the UK economy and many businesses are concerned Brexit could cause the economy to shrink in 2020,’ she said.
‘It’s vital UK firms start investing again as they exit Brexit limbo. This is critical for long-term growth. If current political and economic uncertainties ease, we could see a gradual revival in activity over the course of the year.
If you’re concerned that a recession may be forthcoming, there are steps that you can take now to protect your business. Speak to us to find out more.
Read more about the Stenn Group research here: https://stenn.com/half-uk-us-firms-predict-recession-in-2020-as-chinese-economy-expected-to-maintain-solid-6-7-growth-rate/