The British Chambers of Commerce said in a release that the UK economy is expected to “plunge into recession” before the end of 2022, with inflation “spiking to 14%”. Also, “lingering weakness in growth expected to continue into 2024”.
BCC downgraded UK GDP growth forecast for 2022 from 3.5% to 3.3%. Also, a recession is forecast for the UK this year, with negative economic growth for Q2, Q3, and Q4. It expects the economy to return to 0.2% growth in 2023, and 1% growth in 2024.
Inflation is projected to reach 14% in Q4 2022, upgraded from prior forecast of 10%. CPI is forecast to slow to 5% in 2023, and then return to BoE’s 2% target in 2024.
BCC also expects BoE interest rate to increase from 2% in 2022 to 3% in 2023 and 2024.
