The United Kingdom is projected to experience another five years of high interest rates in order to tackle the escalating prices, according to a prominent global organisation. The International Monetary Fund (IMF) has predicted that the UK will have the highest inflation rate and slowest economic growth among the G7 economies, which include the US, France, Germany, Canada, Italy, and Japan, in the upcoming year.
However, the UK Treasury has emphasised that the IMF’s report did not incorporate recent revisions to the country’s growth forecast. Furthermore, the outlook was formulated prior to the recent developments in Israel, highlighting the unpredictable nature of economic forecasting. Nevertheless, such reports can provide valuable insights, particularly when they align with other economic projections.
The IMF, an international organisation consisting of 190 member countries, has claimed that its growth forecasts for advanced economies have typically been within a 1.5 percentage point range of actual outcomes. In its latest forecast, released biannually, the IMF anticipates that the UK will outpace Germany in terms of growth in 2023, thus avoiding the bottom position among G7 nations. However, the organisation has downgraded the UK’s growth prospects for next year, estimating a meagre 0.6% expansion, making it the slowest-growing developed country in 2024—a year widely expected to feature a general election.
Metro Bank’s Future at Risk with High Street Branch Strategy, Warns Co-Founder
Metro Bank could face a precarious future if it persists with its strategy of concentrating on traditional High Street branches, cautioned Anthony Thomson, the bank’s co-founder. Following days of speculation about the bank’s financial position, Metro Bank recently announced a deal to raise funds in order to secure its future. Despite this, it reaffirmed its commitment to physical branches.
However, Thomson, who served as the bank’s chairman from 2010 to 2012, criticised this approach as a “flawed strategy.” Given the bank’s financial situation, he believes it severely limits Metro Bank’s potential for success. Thomson, who subsequently founded Atom Bank—an internet-only institution without brick-and-mortar branches—expressed his reluctance to be in the shoes of Metro Bank’s current chairman or CEO.
While Metro Bank hailed the financing deal as a new chapter, analysts have argued that expanding the branch network contradicts the growing trend of consumers shifting towards online banking. They contend that maintaining physical branches is costly and may not align with the future of the banking industry.
Mercedes-Benz Reports Dip in Sales, Particularly in China and the US
Mercedes-Benz has reported a slight decline in sales during the third quarter, with a more significant drop in China and the United States due to model changes and supply chain challenges. According to figures from Mercedes-Benz, sales between July and September decreased by 4%, resulting in 510,600 vehicles delivered.
Unlike some competitors like BMW, Mercedes-Benz provides wholesale sales figures, which reflect sales to third-party clients such as dealerships, rather than retail sales. The company revealed that third-quarter sales in Europe saw a notable increase of 12%. However, sales in China experienced a 12% decline, while the United States witnessed a more substantial drop of 15%.
Despite the third-quarter setback, Mercedes-Benz’s total sales for the year have thus far increased by 2% compared to the previous year, aligning with the premium automaker’s full-year sales guidance to maintain levels similar to the prior year.
