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Modest January GDP rebound highlights continued recession risk, ICAEW says

Author: ICAEW

Published: 10 Mar 2023

Suren Thiru, Economics Director at ICAEW, responds to the latest UK GDP figures for January 2023, released by the Office for National Statistics today (Friday 10 March 2023).

“This modest rebound suggests that the economy is still on a downbeat path as eye-watering inflation bites into household incomes and curbs business activity.

“We’re likely to continue flirting with recession throughout much of 2023, as high inflation, tax rises and the lagged effect of rising interest rates shrinks consumer spending power, despite a boost from easing energy costs.

“The Spring Budget could have a significant impact on the UK’s near-term growth prospects. While extending energy support will provide some relief to struggling households, aggressive tax rises would risk eliminating any lingering momentum from the economy.”


Notes to editors:

Contact: ICAEW media office media.office@icaew.com, tom.mackintosh@icaew.com or 07866 853 841.