Experts predict the recession looming over the UK could be twice as bad as previously thought.
Economists working for consultancy EY said less government support accompanied by higher taxes is the main driving force behind the new predictions. Three months ago, EY's Item Club precited a 0.3 per cent contraction in gross domestic product (GDP) this year which would then be followed by a 2.4 per cent growth next year and a 2.3 per cent rise in 2025.
However, an updated forecast on Monday now states there will be a 0.7 per cent drop this year, followed by 1.9 per cent and 2.2 per cent growth in the coming two years respectively. But, EY said that while the recession will be worse, it may not last longer than previously thought.
