British think tank: The British economy may be in recession at the end of 2023

The National Institute for Economic and Social Research (NIESR) estimates that the UK may be in a technical recession at the end of 2023, highlighting the fragile health of the UK economy ahead of the general election. GDP fell 0.1% in the last three months of last year, compared with the same decline in the previous quarter, according to the think tank. The think tank added that the outlook for 2024 should improve as inflation slows and wages continue to rise, but warned that whoever wins this year's election will inherit an economy that "lacks significant growth". Last week, the Central Bank expected the economy to stagnate in the last quarter of last year and projected UK GDP to grow by just 0.25% in 2024. NIESR is optimistic about economic growth in 2024 and expects the economy to grow by 0.9% this year.