ICAEW.com works better with JavaScript enabled.

Recession risk remains despite November GDP rebound, ICAEW says

Author: ICAEW

Published: 12 Jan 2024

Suren Thiru, Economics Director at ICAEW, responded to the latest UK GDP figures for November 2023, released by the Office for National Statistics today (Friday 12 January 2024):

“This underwhelming recovery in GDP points to an economy struggling to gain momentum as high borrowing costs and anaemic demand continue to hinder economic activity.

“November’s rebound may have been insufficient to prevent a small technical recession at the end of 2023, with the cost-of-living squeeze and high borrowing costs likely to have constrained output in December.

“The UK is facing a notably difficult 2024 with the lagged impact of previous interest rate rises, weaker consumer demand and moderately higher unemployment likely to stifle economic activity, despite a boost from lower inflation.

“This lacklustre GDP outturn means that interest rates will remain on hold next month. With the UK teetering on the brink of recession and inflation slowing, the case for loosening policy sooner rather than later is growing.”


Notes to editors:

Contact: ICAEW media office media.office@icaew.com, tom.mackintosh@icaew.com 07866 853841