Posted 10/16/2023, 5:00:00 AM
UK Economy Avoids Recession But Still Faces Challenges From High Inflation and Interest Rates
- UK expected to avoid recession despite higher interest rates and sluggish GDP growth projections
- Growth forecasts upgraded slightly for 2023 to 0.6% but downgraded for 2024 to 0.7%
- Inflation peaked over 11% but could cool to 4.5% by end of 2022 and hit 2% target by mid-2024
- Bank of England unlikely to increase rates beyond current 5.25% and may start cutting from May 2024
- High interest rates biggest headwind for UK economy over next 12 months impacting businesses and consumers