Goldman Now Sees UK Economy Entering Recession in Fourth Quarter

Goldman Sachs Group Inc. expects the UK economy will slip into recession later this year, with the risk that it could turn out to be a deep contraction amid soaring energy costs.

The UK’s gross domestic product is expected to fall by around 1% through mid-2023, Goldman said in a research note Monday. Annual output next year will likely shrink by 0.6%, a sharp turnaround from Goldman’s previous estimate of a 1.1% expansion.