Technical recession prospects for the UK economy

In the statement made by S&P, it was stated that families in the UK are facing increasing pressure on their purchasing power due to the record high inflation rate of 10 percent.

Pointing out that the country's economy, which was previously predicted to grow by 1 percent next year, is expected to shrink by 0.5 percent, it was noted that the economy is expected to grow by 1.4 percent in 2024 and 1.6 percent in 2025.

S&P Global Ratings Senior Economist Boris Glass, whose views were included in the statement, said that inflation will rise further throughout the winter, while consumer spending will contract, pushing the UK economy into a moderate technical recession.

Glass, growth in the following years; He noted that the UK economy will benefit, albeit limitedly, from the recently announced medium and long-term fiscal policies to increase its growth potential.

Pointing out that the energy price guarantee, along with similar subsidies for businesses, will be a vital support during the winter, Glass said that fiscal measures have a high cost, and that medium-term fiscal tightening seems inevitable if strong medium-term growth cannot fully finance the extra expenditures, which may put pressure on future growth. stressed.