The UK is estimated to have entered a recession in the third quarter of 2022, which could last until the end of 2023. But while the duration of the current downturn may be relatively long, the drop in activity is expected to be mild by historical comparisons.
In our latest UK Economic Outlook, we look at the prospects for the UK economy as we head into a new year. We provide our forecasts for growth, inflation, interest rates and unemployment. We also look at the picture across different sectors and the outlook for public sector finances.
Inflation is expected to gradually ease during 2023, but not before leading to a sharp rise in interest rates and a cooling of the housing market. Despite the protracted recession, unemployment could remain relatively low, providing an important support to incomes.
The report will help your business to understand and prepare for the upcoming economic challenges and opportunities.
KPMG in the UK