Technical Analysis

Goldman Sachs downgraded forecast for UK economy – now expect a “significant recession”

Goldman 2023 UK economic output forecast:

  • expect a 1% contraction (the previous forecast was a 0.4% contraction)
  • GS adds that core inflation is expected at 3.1% at the end of 2023 (previously forecast 3.3%)
  • “Folding in weaker growth momentum, significantly tighter financial conditions, and the higher corporation tax from next April, we downgrade our UK growth outlook further and now expect a more significant recession”

Meanwhile the political firestorm in the UK continues. There will be an attempt to remove new PM Truss this week.

GBP update:

Weekend news gave GBP a pop:

Bank of England Gov Bailey says the next interest rate hike could be higher than expected

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