UK Might Avoid Recession This Year, Economy Still Poised to Slow Recovery: BCC

The British Chambers of Commerce (BCC) said on Wednesday that the nation’s economy is on pace to contract less than anticipated this year.

The GDP would shrink by 0.3% this year. Which was less than its earlier prediction of a 1.3% loss.

The GDP is anticipated to contract by 0.3 percent in the 1st quarter of 2023, expand by zero in the 2nd. And then increase by 0.2 percent in each of the 3rd & 4th quarters.

UK’s inflation decreased to 10.1 percent in Jan, easing away from the 11.1 percent peak it achieved in October 2022. But still more than 5 times the BoE’s 2 percent objective.

The BCC predicts that the BoE will raise interest rates by a quarter point at the end of the year. Bringing them to 4.25%, and then lower them to 3.5% by late 2024.