UK Economy Seen Sputtering Below Pre-Pandemic Levels Until 2024
- Business group BCC says investment is likely to stall
- Inflation to halve and rates to peak at 4.25% this year
Companies face a jump in corporation tax from 19% to 25% from April.
Photographer: Jose Sarmento Matos/BloombergThis article is for subscribers only.
The UK will avoid a recession this year, but sluggish growth means the economy will not recover to pre-pandemic levels until the final quarter of 2024, according to the British Chambers of Commerce.
The business lobby group upgraded its outlook sharply following better than expected household spending and investment by firms at the end of 2022, but the economy will still shrink 0.3% this year. In its last quarterly forecast, the BCC expected a 1.3% contraction this year.