RIYADH: The UK economy could enter recession in the fourth quarter of this year amid soaring energy prices, according to US investment bank Goldman Sachs.
In a recent research note, it predicted that the UK's gross domestic product is expected to fall by around 1 percent through mid-2023, Bloomberg reported.
The report further added that the annual output next year will likely shrink by 0.6 percent, a sharp turnaround from Goldman’s previous estimate where it predicted an expansion of 1.1 percent.
A team of economists in Goldman Sachs led by Sven Jari Stehn said that concerns around the cost-of-living pressures in the UK have continued to intensify on the back of the worsening energy crisis.
They added: “Real consumption is still likely to decline significantly.”
Earlier this month, the Bank of England announced its biggest interest rate hike in 27 years, and warned that the country is heading for more than a year of recession triggered by higher inflation.
