UK economic growth forecasts downgraded for next two years – economists
The IndependentGet the free Morning Headlines email for news from our reporters across the world Sign up to our free Morning Headlines email Sign up to our free Morning Headlines email SIGN UP I would like to be emailed about offers, events and updates from The Independent. EY Item Club’s latest quarterly economic forecast also suggested that caution by Bank of England rate-setters not to cut interest rates too quickly will contribute to “steady rather than rapid” growth. Lower household savings has reduced the scope of potential consumer spending and sticky inflation means that interest rate cuts are set to occur at a gradual pace Matt Swannell, EY Item Club The organisation’s autumn forecast predicts that UK gross domestic product will increase by 0.9% in 2024. Matt Swannell, chief economic advisor to the EY Item Club, said: “Following last year’s technical recession, a strong start to 2024 helped establish the UK’s recovery and a return to steady growth is forecast for next year. “However, lower household savings has reduced the scope of potential consumer spending and sticky inflation means that interest rate cuts are set to occur at a gradual pace.