Economists at KPMG are also warning that UK interest rates will continue to rise this year, due to stubborn inflation.
Their latest economic forecasts, released this morning, show a brighter growth picture -but high inflation for longer than hoped.
KPMG say: Given the latest surveys, we no longer expect a recession in the UK, but growth is forecast to remain sluggish by historical standards.
Inflation is on the way down, but the pace of moderation is slower than we previously thought. This will likely necessitate further interest rate increases and more pain to come for borrowers.
The upside revision to our forecast means no plain sailing. Risks remain skewed to the downside, with ongoing fragilities potentially yet to be fully uncovered.
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