JPMorgan forecasts UK recession

JPMorgan said it expects the UK economy to contract in 2023. Arguing that the UK economy has entered a long period of stagnation due to rapidly rising natural gas prices, slowing global growth and tight economic conditions, JPMorgan announced that it expects the UK economy to contract in 2023. JPMorgan estimated that GDP, which is expected to grow 4.3 percent this year, will contract 0.6 percent in 2023. Estimating that the Bank of England will raise interest rates to 4.25 percent by the end of the first quarter of next year, JPMorgan also argued that the effects of tightening monetary policy on the economy will take longer to be seen than in the past.