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City of London business district
Photo: Tolga Akmen/EPA
According to the Chambers of Commerce Association BCC, the British economy has a long way to go before it recovers.
The association expects the recession to last another five quarters.
Growth is not expected until the end of 2023, and in 2024 there will only be a "bloodless recovery," said the British Chambers of Commerce (BCC) on Friday night.
Investments, exports and private consumption are expected to remain subdued.
The Bank of England had previously warned of a long-lasting recession.
The BCC expects the economy to shrink by 1.3 percent in the coming year.
Household spending would fall significantly due to rising energy costs and mortgage payments, as well as falling real wages.
Added to this are the poor prospects for the global economy in the wake of Russia's war of aggression against Ukraine, it said.
For 2024, Verbund then expects growth of 0.7 percent.
This is significantly less than estimated by the OBR supervisory authority.
Is the competition pulling away?
However, the BCC expects inflation to have peaked at a good 11 percent at the moment.
By the end of 2023, it is expected to fall to 5 percent and a year later to 1.5 percent.
"However, this simply means that prices will stabilize at very high levels and the government's plans to reduce support for energy bills after April 2023 could trigger inflation again."
"The very real concern is that once the economy emerges from recession, the UK will be left behind by its competitors as growth remains weak," said BCC expert Alex Veitch.
It's not too late to turn back.
Concrete measures are needed for infrastructure investments, training, trade and green technologies.
beb/dpa
