UK recession: Bank of England losing fight against inflation as economy starts to shrink

07 Jan 2023

The UK economy is caught in a whirlwind of soaring inflation that has remained at a 40-year high, a depreciating pound and monetary policy tightening, with the latest GDP reading showing the economy has started to contract.

The previous UK Prime Minister Liz Truss’s 44-day tenure from September to October 2022 aggravated the struggles. And it will be up to Rishi Sunak, the UK’s current Prime Minister, to steer the country’s economy back on course.

A UK recession is unavoidable in 2023 but how long will it last? Economists expect a potential return to normal by 2024.