UK faces 33% chance of 'double dip': Barclays Wealth

clock

Barclays Wealth chief economist Michael Dicks believes the UK faces a one in three chance of entering a "double-dip" recession next year.

Dicks cites three factors which could prove decisive - the impact of fiscal tightening, a weaker than expected export boost and higher inflation. He believes the fiscal tightening outlined in the Budget could have a greater impact than generally expected. "Look closely at the numbers, and you see that fiscal effort will jump by more than two percentage points next year, driven largely by the in-your-face hike in VAT, but also affected by other tax changes and by cuts in Government spending and benefit payments," Dicks says. "The OBR believes that GDP growth will take the smallest o...

To continue reading this article...

Join Professional Adviser for free

  • Unlimited access to real-time news, industry insights and market intelligence
  • Stay ahead of the curve with spotlights on emerging trends and technologies
  • Receive breaking news stories straight to your inbox in the daily newsletters
  • Make smart business decisions with the latest developments in regulation, investing retirement and protection
  • Members-only access to the editor’s weekly Friday commentary
  • Be the first to hear about our events and awards programmes

Join

 

Already a Professional Adviser member?

Login

More on Investment

Into the Spider-Verse we go: Chris Justham assesses Trump Mk II

Into the Spider-Verse we go: Chris Justham assesses Trump Mk II

'The cognitive dissonance when your beliefs don't add up cause very real pain'

Chris Justham
clock 04 April 2025 • 3 min read
Investors hold back on equity exodus as they brace for Trump's next move

Investors hold back on equity exodus as they brace for Trump's next move

UK equity funds suffer

Linus Uhlig
clock 03 April 2025 • 2 min read
Darius McDermott: Are we seeing the end of US exceptionalism?

Darius McDermott: Are we seeing the end of US exceptionalism?

The Euro Stoxx 50 Index is up 10.8% since the start of the year

Darius McDermott
clock 03 April 2025 • 5 min read