Economics
U.K. Would Be in Recession Were It Not for Post-Covid Bounce
- Downgrade would normally have meant 3rd slump since 2008: OBR
- Ambitious policy plans could cost Sunak half fiscal headroom
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Britain would be in recession this year due to the global inflation shock were it not for the rebound in growth from the pandemic, according to the government’s official independent forecaster.
At U.K. Chancellor of the Exchequer Rishi Sunak’s Spring Statement last week, the Office for Budget Responsibility downgraded GDP growth this year to 3.8% from 6% as the sharp rise in energy and commodity prices squeezes household spending.