The UK economy had just returned to its pre-pandemic size when it was hit by new shocks.
The Russia-Ukraine war and renewed lockdowns in China have put upward pressure on commodity prices while keeping supply chains under strain. There are growing concerns that policy actions to combat inflation – currently at a 40-year high – and further fallouts caused by geopolitical tensions could bring about another recession.
In KPMG’s latest UK Economic Outlook they look at the prospects for the UK economy for the second half of 2022 and into 2023. KPMG look at:
- Inflation: how long will it continue to rise?
- Interest rates: will there be further increases in the Bank Rate this year?
- The labour market: Will it become easier for organisations to hire workers?
- The housing market: Will there be a slowdown in what has been a resilient market to this point?
- Consumer confidence: What’s the impact of a fall in real incomes and rising costs?
Read more about this on their website.