The UK is expected to avoid a recession this year
The UK economy is set to shrink this year but avoid a technical recession, according to the government's independent forecaster.But it will escape the usual definition of a recession, which is two consecutive three-month periods of decline, Chancellor Jeremy Hunt said.The OBR also said inflation would more than halve to 2.9% by the end of 2023.
Inflation - the rate at which prices are rising - is currently in double digits, driven by soaring food and energy prices.In a growing economy, the value of the goods and services that the country produces - measured by gross domestic product - increases each quarter.But sometimes the level of GDP falls, and that is a sign that the economy is doing badly.
The OBR said the economy was still likely to shrink this year, but by less than it previously thought."After this year the UK economy will grow in every single year of the forecast period: by 1.8% in 2024; 2.5% in 2025; 2.1% in 2026; and 1.9% in 2027," Mr Hunt said.
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