UK Economy Needs Shock-Proofing, Experts Say

Economists and policymakers are calling for strategies to shock-proof the UK economy as it grapples with the fallout from Brexit, the COVID-19 pandemic, and ongoing geopolitical uncertainties.

A report published on January 24 highlights vulnerabilities in key sectors, including manufacturing, energy, and services, which have been further exacerbated by inflationary pressures and sluggish productivity growth.

The report emphasizes the importance of enhancing supply chain resilience and reducing dependency on volatile international markets. Recommendations include investing in renewable energy projects, strengthening trade ties with non-EU nations, and supporting small businesses to foster innovation and growth.

Experts have also highlighted the need to address social inequality, which has widened in recent years and threatens economic stability. Targeted policies, such as expanding access to education and affordable housing, could help bridge the gap and create a more inclusive economy.

While the UK government has introduced measures such as energy subsidies and tax incentives, critics argue that a more cohesive long-term strategy is needed. As the country faces mounting global and domestic challenges, a proactive approach to economic resilience could determine its ability to thrive in an uncertain world.