The UK economy is flatlining and has been for the best part of a year. Recovery after the deep slump of 2020 has petered out. Higher inflation, higher interest rates and higher taxes are all exacting a toll.
Technically, the strict definition of a recession has not been met because the economy has yet to contract for two successive quarters. But official estimates showing zero growth in the final three months of 2022 meant it was a mighty close thing. With the full impact of higher borrowing costs yet to be felt, neither the chancellor nor the governor of the Bank of England would bet against a recession at some point this year.
