Research commissioned by finance provider Stenn Group has revealed that a significant number of UK businesses predict a recession in 2020.
The research found that over a third of UK firms expect the economy to shrink this year. More than a tenth anticipate it to contract by 1-3%.
6% expect the economy to stay flat and experience no growth.
The research also suggested that trade tariffs, Brexit and regional instability pose risks to UK businesses in 2020. Climate change and environmental concerns are also worrying firms, according to the report.
‘2019 was weaker than expected and the stakes are only higher for the year ahead,’ said Kerstin Braun, President of Stenn Group.
‘The prolonged uncertainty has been battling the UK economy and many businesses are concerned Brexit could cause the economy to shrink in 2020. 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.’