EY Summer Forecast
A full-blown recession looks increasingly likely for the UK. In this report, Criticaleye’s Advisory Partner, EY, delves into its latest forecast, exploring what the UK economy should expect to see in the near future.
Key takeaways include:
- The increase in the cost-of-living is putting significant pressure on household incomes.
- Consumer confidence has hit record lows and monetary activities seem to be slowing.
- Data suggests that inflation will peak at around 11 percent this autumn and average at approximately 8.7 percent over the course of 2022. The Bank of England (BoE) is likely to continue raising interest rates, increasing the risk borrowers face.
- The forecast for capital business investment is 6.4 percent growth this year and 3.9 percent in 2023. It is predicted that business investment will not return to pre-pandemic levels before 2025.
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