Home International Britain will remain in recession till the summer of 2023, economists warn

Britain will remain in recession till the summer of 2023, economists warn

Economic Crisis In Britain: Economists have expressed concern about the UK economy. Along with this, economists have also issued a warning regarding this. According to economists, the UK economy is expected to shrink by about 0.2 per cent in each quarter from October to June. Britain will enter recession by the summer of 2023. This prolonged economic downturn will result in an overall decline of 0.3 percent in gross domestic product (GDP) for 2023.

Economy to grow by 1 percent in 2023

An economy enters a technical recession when its GDP falls for two or more consecutive quarters. The Economic Forecast Group has significantly lowered its forecast last summer, which estimates the economy will grow at 1 percent in 2023. At the same time, the combination of high energy prices, rising inflation, rising interest rates and global economic weakness has increased the likelihood that the UK economy will face a recession by the middle of next year.

Government imposed cap on electricity bill

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However, the government’s energy bill cap has reduced the risk of a severe recession. EY Item Club said this means it will not be as bad as the previous recession. The government intervened in early September to cap energy bills for ordinary households at £2,500 (Indian Rupees 2,31,036) per year, and businesses have benefited greatly since then. The move is set to ease the pressure on household incomes and prevent the collapse of businesses that are otherwise unable to afford the rising bills.

How will the situation be in 2024 and 2025?

In addition, EY said, “Once high inflation subsides, a weaker pound boosts exports and the Bank of England ceases to hike interest rates, GDP should return to growth in the second half of 2023.” Then the economy is expected to expand by 2.4 percent in 2024 and by 2.3 percent in 2025.”

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