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Stronger economic growth ‘could be on horizon’ for UK following recession

by Amy Johnson LLB Finance Reporter
16th Feb 24 1:55 pm

While the UK entered into a recession in 2023, there are ‘positive signs’ for the economy according to an expert

Despite the UK falling into a recession in the latter half of 2023, there could be ‘stronger economic growth’ on the horizon this year, according to a financial expert.

It comes amid more trouble for Prime Minister Rishi Sunak as the Conservatives were defeated by Labour majorities in two by-elections on Thursday in Kingswood and Wellingborough, on the same day the recession was confirmed.

Althea Spinozzi, Head of Fixed Income Strategy at investment platform Saxo, has said that retail sales are on the rise and wages are continuing to grow above 6%, which points to ‘positive signs ahead’, although the BoE may continue to maintain higher interest rates.

Althea Spinozzi, Head of Fixed Income Strategy as investment platform, Saxo said, “While it is true that the UK has suffered a recession in the second half of 2023, there are positive signs ahead.

“The manufacturing PMI [Purchasing Managers’ Index] is showing signs of recovery, retail sales are on the rise, and wages continue to grow at a rate above 6%.

“This suggests that stronger economic growth could be on the horizon for 2024. However, it’s worth noting that the Bank of England might maintain higher interest rates, the likes of which haven’t been seen since the Global Financial Crisis, for an extended period.”

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