The UK’s lagging economy shows some signs of recovery

Britain's economy, which had seemed certain to fall into recession in early 2023, has shown some unexpected signs of recovery, raising questions about whether the Bank of England really is about to pause its run of interest rate increases.

by | 27 Feb, 2023

Bounces in measures of business activity and consumer confidence and a pickup in tax revenues have led some analysts to upgrade their forecasts for the economy this year, although any growth is likely to be weak.

JP Morgan last week raised its projection for gross domestic output growth in 2023 to 0.4% from a previous estimate of 0.1%. That compares with the Bank of England’s (BoE) forecast, made in early February, for a contraction of 0.5%.

Britain is the only Group of Seven (G7) economy still smaller than before the coronavirus pandemic. In January, the International Monetary Fund said it would be the only G7 country to shrink in terms of gross domestic product this year.

Read more at Reuters

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