Brits told to prepare for recession – RT Business News
Goldman Sachs economists expect a recession in the UK to begin later this year as record inflation hitting household incomes leads to lower consumption.
Strategists expect Britain’s economic decline to begin in the fourth quarter of the current year and predict that the country’s GDP will contract by 0.6% in 2023, a sharp reversal from l the bank’s previous estimate, where it forecast a 1.1% expansion.
In August, UK consumer confidence fell to historic lows. In the previous month, consumer price inflation in the country jumped to 10.1% a year, reaching a 40-year high, as soaring food and energy prices continued to escalate. intensify the historic pressure on households and businesses.
“Real consumption is expected to fall significantly further,” warn economists.
Energy bills across the country are set to soar by 80% to an average of £3,549 ($4,155) a year from October, government regulator Ofgem said on Friday. Earlier this month, the regulator said it would adjust the cap quarterly rather than every six months due to intense price pressure in energy markets.
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