UK Is Set to Face More Frequent Recessions, Economists Warn
- Bloomberg Economics says trend growth rate down to just 1.2%
- Analysis points to technical recession once every five years
This article is for subscribers only.
Britain is likely to face more frequent technical recessions after a slowdown in the economy’s speed limit made it vulnerable to growth shocks, according to Bloomberg Economics.
The analysis reveals that the UK’s trend growth rate — the pace it which the economy can sustainably grow without boosting inflation — has halved from an annual average of 2.5% between 1955 and 2009 to 1.2% in the years ahead.