Finally on the up: UK 'to avoid recession' as stronger growth forecast

HOPES that Britain can dodge a recession were given a huge boost today when two leading forecasters said growth this year would be far stronger than previously feared.

- Jonathan Prynn

Business group the CBI and leading consultants KPMG both said the UK should avoid a slump in 2023 with the economy performing far better than expected in the first half of the year and picking up pace in the summer and autumn as inflation finally starts to ebb.

The CBI said it was now anticipating growth of 0.4 per cent this year and 1.8 per cent in 2024. It had previously pencilled in a contraction of 0.4 per cent in 2023 followed by growth of 1.6 per cent next year. A recession is usually defined by economists as two consecutive quarters of negative growth.