There is a growing possibility that the UK could avoid a technical recession this year, according to a survey published by the National Institute of Economic and Social Research published yesterday.

However, the Institute still predicts that the country will see a prolonged and significant fall in living standards, while it also reduced its expectation for GDP this year to 0.2% from 0.7% previously. It also reduced its prediction for 2024 from 1.7% to 1%.

The Institute’s Managing director commented that its report paints a particularly downbeat picture of the UK, which will be slow to recover from the energy price shock that it saw in 2022.

One-in-four will be unable to afford heating and food without dipping into savings, or seeking government support.

One of the Prime Minister's goals for 2023 is to see inflation halved and the Bank of England is acting cautiously, but judiciously in trying to drive inflation lower, although the natural fall in prices will see that goal take a little longer to achieve.

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