Recession to be worse than previously thought, experts say

The recession expected to hit the UK could be twice as bad as previously thought, economists warn. Soaring household bills, slow growth, and forecasts of a protracted

economic downturn have taken their toll on the millions of Britons struggling against the tough economic environment – thought to be the worst in recent memory. Faced with a

worsening situation, less government support and higher taxes, early signs of possible recovery last week look increasingly distant, with economists at consultancy firm EY saying

they thought each of the next three years could be worse than they had expected in the past. It comes just three months after EY’s Item Club predicted a 0.3 per cent

contraction in gross domestic product (GDP) this year, followed by 2.4 per cent growth next year and a 2.3 per cent rise in 2025. But in an updated forecast released on

Monday, they forecast a 0.7 per cent nosedive this year, followed by 1.9 per cent and 2.2 per cent growth in the coming two years. “The UK’s economic outlook has become

gloomier than forecast in the autumn, and the UK may already be in what has been one of the mostly widely anticipated recessions in living memory,” said EY’s UK chair Hywel

Ball. But EY said that while the recession might be more remorseless than it previously suggested, it will not necessarily last longer than the earlier forecast. It is

still unclear if the country is already in recession. A recession is defined as two-quarters of consecutive GDP contraction.