Nobody wants one, but a recession in the UK is looming, with the Bank of England (BoE) and British Chambers of Commerce (BCC) predicting the UK will enter one by the end of 2022.
The monetary policy committee of the BoE wrote: “The latest rise in gas prices has led to another significant deterioration in the outlook for activity in the United Kingdom, which is now projected to enter recession from the fourth quarter of this year.”
A key aspect of the slowing economy is the worryingly high rate of inflation as measured by the consumer price index, which hit 10.1% in July 2022 and could peak at 14% according to the BCC.
It predicts GDP growth to grow in 2023 at a very low 0.2%, but the BoE expects the economy to continue contracting throughout 2023. “Growth thereafter is very weak by historical standards”, it said.