ICAEW Insights In Focus: Recession? What recession? Time for business to stop worrying and start investing

In this special edition of Insights In Focus, Iain Wright, ICAEW’s Managing Director, Reputation and Influence is joined by Kitty Ussher, Chief Economist at the Institute of Directors, and Suren Thiru, ICAEW’s Director, Economies.

Talking on the morning that UK GDP figures for May were released showing an unexpected return to economic growth, Kitty and Suren both tell Iain why managers and business owners should be more confident in the economy’s medium-term health. Inflation rates are likely to come back within a manageable margin by next year, and the fundamentals of the UK economy are in better shape than many business leaders think.

As Kitty points out, “Everyone’s feeling worried at the moment. That means your competitors are also feeling worried. And so if you think the fundamentals of your business are actually okay … then you should be investing for your future because it may be that your competitors are too nervous to do so.”

Beyond advising everyone to stop worrying, the team also discuss why the labour market is so hot, how the government should help ease the staff shortages so many businesses face, and what changes to economic policy will really make a difference to the UK’s companies.

And finally, when we have a new Conservative government eight weeks from now, what would Kitty and Suren advise the next Chancellor to focus on. Would you agree?

Guests
- Kitty Ussher, Chief Economist at the Institute of Directors
- Suren Thiru, Director, Economies, ICAEW

Host
Iain Wright, Managing Director, Reputation and Influence, ICAEW

Links:
- https://www.ons.gov.uk/economy/grossdomesticproductgdp/bulletins/gdpmonthlyestimateuk/may2022
- https://www.ons.gov.uk/employmentandlabourmarket/peopleinwork/labourproductivity/articles/whatistheproductivitypuzzle/2015-07-07

Producer
Natalie Chisholm

Episode first published: 18 July 2022
Podcast recorded: 13 July 2022