Business News Round Up (18/03/2025)
UK economy downgraded as OECD warns of trade war fallout
The UK’s economic growth forecast has been downgraded by the Organisation for Economic Cooperation and Development (OECD), which has urged global leaders to de-escalate rising trade tensions. According to the OECD’s latest projections, the UK’s GDP growth is expected to reach 1.4% this year—0.3 percentage points lower than previously forecast—while 2026 growth has been revised down to 1.2%. Inflation expectations remain unchanged at 2.7% for this year and 2.3% in 2026. Despite the downgrade, Britain is set to be the second-fastest growing economy in the G7, behind only the United States. However, the figures present a challenge for Chancellor Rachel Reeves ahead of the upcoming spring statement, as she faces mounting pressure to meet fiscal targets without resorting to significant spending cuts. The OECD attributes the slowdown to global trade uncertainties and inflationary pressures, which are expected to keep UK interest rates at 4% until late 2026.
https://bmmagazine.co.uk/news/uk-economy-downgraded-as-oecd-warns-of-trade-war-fallout
Scottish corporate insolvencies up 10% year-on-year
In February there were 103 company insolvencies registered in Scotland; up 10% year-on-year. This was comprised of 60 creditors’ voluntary liquidations (CVLs), 38 compulsory liquidations and five administrations. There were no company voluntary arrangements or receivership appointments. The latest figures from Accountant in Bankruptcy, Scotland’s insolvency service, also revealed that between 26 June 2020 and 28 February 2025, there were three restructuring plans and one moratorium. The total insolvency rate in Scotland in the 12 months to February 2025 was 51.6 per 10,000 companies on the effective register – down by 1.2 from the preceding 12 months. Historically, compulsory liquidations were the most common type of company insolvency in Scotland. However, since April 2020, numbers of CVLs have typically remained higher than numbers of compulsory liquidations.
https://www.insider.co.uk/news/scottish-corporate-insolvencies-up-10-34881651
Growth in Greater Manchester’s job market prompts calls for focus on workforce development to avoid skills gap crisis
Labour market analysis conducted by leading prison education provider Novus has projected that job creation in Greater Manchester will outpace increases in the available workforce putting the regions otherwise encouraging economic growth prospects at risk. The analysis shows that Greater Manchester experienced an impressive 8.6% growth in jobs between 2018 and 2023 adding 114,215 new jobs, exceeding the national average by more than 2 percentage points (6.4%). This growth is now projected to continue over the next five years with an additional 59,572 new jobs forecasted to be added to the city region’s economy. However, while Greater Manchester’s population is also expected to grow—rising by 54,399 people to 2,938,987 by 2028—the anticipated job growth will outpace the increase in population. This gap could leave employers struggling to fill critical roles, especially in high-demand sectors such as Information and Communication, Accommodation and Food Service, Construction and Manufacturing.
AI growth challenges UK teach sustainability goals
New research from NetApp reveals that UK tech companies are struggling to balance AI expansion with sustainability due to single-use data. Data infrastructure company NetApp has announced new research which reveals that UK technology companies are struggling to balance sustainability and AI ambitions due to their current approach to data management. The overwhelming majority of UK IT leaders surveyed (92%) are aware of the negative environmental impact of single-use data and are keen to reduce emissions from IT operations. However, the competitive advantages of AI are compelling, and business leaders estimate that AI projects will cause their data estates, including single-use data, to grow by an average total of 41%. Sustainability remains a top consideration and priority for companies, and the IT function is becoming more important in realising these ambitions.
https://www.digit.fyi/ai-data-growth-netapp