US EditionQuarter of a million people could lose their jobs by the middle of 2027 as the UK ‘flirts with recession’: Report
The forecasters said inflation could approach 4% and the jobless rate could reach 5.8% by mid-2027.
- Britain's economy is poised to "flirt" with recession as fallout from the conflict in Iran drives up energy costs, according to the latest report from The Item Club.
- The International Monetary Fund warned the international outlook has "abruptly darkened" due to the war, which threatens to throw the global economy "off course" and trigger a potential energy crisis.
- Despite 0.5 per cent growth in February, The Item Club predicts growth will flatline through the second and third quarters, leaving annual GDP at a modest 0.7 per cent.
- Rising energy costs will stifle activity, causing the jobs market to endure its "biggest hit since the pandemic" as unemployment peaks at 5.8 per cent by mid-2027, displacing nearly 250,000 workers.
- Interest rates will likely remain on hold throughout 2026 despite inflation projected to surge to almost 4 per cent, as the Monetary Policy Committee avoids knee-jerk hikes amid economic fragility.
19 Articles
19 Articles
UK 'On Brink' Of Recession — 250,000 People Could Lose Jobs By Mid-2027 Due To Iran War
Close to 250,000 people could lose their jobs by mid-2027 as the UK economy teeters on the edge of recession, battered by surging energy costs and shattered supply chains tied to the Iran conflict, according to a report published on Sunday by the EY Item Club. The forecasting group, which uses the Treasury's own model of the British economy, said GDP growth will halve to 0.7 per cent in 2026, down from 1.4 per cent last year. The economy is expe…
UK to 'flirt' with recession as Iran war oil shock bites, report warns
The UK economy will "flirt" with recession this year and almost 250,000 people could lose their jobs due to the effects of the Iran war oil price shock, according to a respected independent forecaster.
UK unemployment to top two million as Britain 'flirts with recession', economists warn
Britain faces the prospect of unemployment climbing above two million for the first time in over a decade, according to new forecasts from the Item Club.The influential economic research group predicts the jobless rate will jump from 5.2 per cent to 5.8 per cent next year as the Iran conflict batters an already fragile economy.Such a rise would push the number of people out of work from 1.87 million currently to more than 2.1 million, a level no…
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