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‘Britain is already within the longest recession since records began’

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‘Britain is already within the longest recession since records began’: Forecasters expect downturn to last until end of next 12 months

The UK has fallen right into a recession which will likely be the longest since records began within the Nineteen Fifties, economists have warned. 

Accountancy firm KPMG said the country dropped into recession, defined as two consecutive quarters of decline, within the third quarter of the 12 months. 

And forecasters expect the downturn to last until the tip of next 12 months, knocking 1.9 per cent off the UK’s economic output. 

Warning: Accountancy firm KPMG said the country dropped into recession within the third quarter of the 12 months

Chief economist Yael Selfin said the decline is being driven by the soaring energy and food prices facing households. 

They’ve suffered the largest drop in living standards on record because the surging cost of living eats into wages. Soaring rates of interest within the wake of Liz Truss and Kwasi Kwarteng’s disastrous mini-Budget also ‘added a headwind’ to growth, KPMG said in its economic outlook report. 

And Selfin said families, particularly those on lower incomes, will rein in spending within the Latest Yr, and eat out less often. Households had already began cutting back by the point energy bills shot as much as £2,500 for a typical household in October. 

And KPMG added that by the center of 2024 spending within the UK per person can have fallen by 3.4 per cent. Despite Britain facing the longest recession on record, Selfin said it can be ‘less severe’ than downturns within the Seventies and the recession brought on by the financial crisis in 2008. 

And in a reason for optimism, Selfin said the image could turn more positive, particularly if energy bills return to more normal levels. 

KPMG’s report also showed unemployment within the UK will remain relatively low, providing ‘a vital support to incomes’.

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