Good news for UK and all of us...economy's bounceback will start soon

THIS year should herald a significant "turning point" for the economy and bring much-needed relief to millions of households, experts say.

- Giles Sheldrick

The devastating mortgage, energy, food and interest rate crises are all finally within sight of coming to an end, according to the latest thinking.

There is also renewed business optimism while Chancellor Jeremy Hunt is intent on putting more money into people's pockets, with household incomes expected to rebound after years of gloom.

The confidence comes against a background of inflation falling further than forecast and expectations of a 35% year-on-year drop in energy bills.

An increase in gross domestic product - the monetary value of final goods and services of 0.7% this year, made in economic forecasting group EY's autumn forecast, has now been upgraded to 0.9%.

And the UK economy is predicted to grow by 1.8% in 2025, up from the 1.7% tipped in October.

Hywel Ball, chairman of economic forecasting group EY, said: "Falling inflation and declining market interest rates, coupled with potential for additional tax cuts in the Chancellor's Spring Budget, suggest the UK is at a turning point in 2024 and about to enter a more positive phase of growth." The EY report said economic stagnation should fade and signs of a recovery will soon take effect.

The inflation rate is expected to average around 2.4% through 2024, lower than the predicted 2.8% by the economic forecaster in its autumn forecast.