UK to officially avoid recession in first half of this year as Bank of England readies twelfth straight interest rate rise
The UK is expected to avoid a recession in the first half of 2023, as gross domestic product (GDP) is predicted to rise by 0.1% in the first quarter of the year, according to data from the Office for National Statistics.
Resilient consumer spending and decent business investment are said to be driving the increase in GDP. S&P Global and CIPS have reported that the services sector, which contributes around £2 of every £3 in the UK, is operating at its strongest rate in a year.
The Bank of England had previously predicted a recession, which has not materialised. Inflation is currently running at 10.1%, with household and business finances continuing to feel the pressure. Strike action has been a feature of 2023 so far and has been suggested as a factor that has prevented further upward momentum for the economy.
