UK recession could be much worse than expected, according to forecasters
Proactive Investors
Published Jan 23, 2023 07:45
Updated Jan 23, 2023 08:13
UK recession could be much worse than expected, according to forecasters
Proactive Investors - The UK's recession could be deeper than previously thought, according to leading economic forecasters at the business consultancy EY.
They've warned that the next three years could be worse than they anticipated just three months ago.
The reason for the downgrade is due to reduced government support, higher taxes, and an overall worsening outlook.
EY's Item Club had predicted a 0.3% contraction in gross domestic product (GDP) this year, followed by 2.4% growth next year and a 2.3% rise in 2025.
But in an updated forecast, it now says GDP will drop 0.7% this year, followed by growth of 1.9% and 2.2% over the next two years.
EY's UK chair, Hywel Ball, said the economic outlook has become 'gloomier than forecast' in the autumn, and that the country may already be in one of the most widely anticipated recessions in living memory.
Read more on Proactive Investors UK
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