UK set for recession rebound, GDP figures to show
UK economy showing signs of recovery in services sector growth and lower inflation, expected to exit recession with household income rebound by 2025-26.
- Bilawal Riaz
- 1 min read
The UK economy is expected to show signs of recovery with GDP figures for January anticipated to indicate a growth of 0.2%. This growth is attributed to a strong performance from the services sector and a decrease in inflation compared to wage growth. City economists believe this progress will help the UK step out of the recession it entered in the second half of the previous year due to factors like high interest rates and inflation. Experts predict that household income will return to pre-pandemic levels by 2025-26, earlier than previously estimated. Despite challenges such as strike action in healthcare and a decline in manufacturing, analysts like Rob Wood believe that the UK is on the path to a sustained economic upturn. Business and consumer confidence are on the rise, signaling a positive outlook for the country’s economic recovery.