U.K. Risks Recession After Jump in Energy Cost, Niesr Says
- Forecaster says $120 oil triggers its pessimistic scenario
- Weaker growth would blow Treasury’s budget off track
This article is for subscribers only.
Britain is heading for a recession in the second half of the year if energy prices remain at current levels, according to the National Institute of Economic and Social Research.
The research group said U.K. gross domestic product shrinks 0.2% in the third and 0.1 in the fourth in its pessimistic scenario, which assumes oil prices stick above $120 a barrel and there’s a lasting 70% upward shock to natural gas prices.