Is the UK economy no longer in recession?

On June 12, the Confederation of British Industry (CBI) stated that the UK economy may avoid recession this year, but underlying issues such as weak business investment will persist.

The UK economy may avoid recession this year. (Source: Getty Images)

According to the CBI, the UK economy is on track to grow by 0.4% this year and 1.8% next year. This is a more optimistic forecast than previous predictions.

The federation said that the decline in energy prices, supply chain disruptions, and the reopening of the Chinese economy after restrictions caused by the Covid-19 pandemic were the main reasons for CBI's upward revision of its forecast.

However, CBI's chief economist Alpesh Paleja notes that there is no denying the fact that this year will be another difficult one for both businesses and households, as the Bank of England (BoE) is expected to raise interest rates from the current 4.5% to a peak of 5% in August.

He emphasized: "What is worrying is that the British economy is underperforming in many key areas such as business investment and trade."

The CBI believes that business investment, a weakness in the UK economy since the 2016 Brexit vote, will not return to pre-pandemic levels before the end of next year.

Source: https://baoquocte.vn/kinh-te-anh-khong-con-lo-suy-thoai-230701.html