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Britain’s economy will grow slower this year and next year than previously hoped, as ongoing supply chain disruption and rising prices drag back growth.
So warns the EY Item Club this morning, as it predicts that the ‘tougher’ part of the recovery is upon us.
In its autumn forecasts, it warns that ‘higher and more sustained inflation’, recent rises in energy prices, and intensifying supply chain disruption mean the recovery won’t be as strong as hoped.
EY now sees UK GDP rising by 6.9% this year, down from 7.6% forecast in the summer [but still the best year since 1941, after last year’s near-10% plunge]
But growth in 2022 is also seen lower – at 5.6%, down from 6.5% forecast before.
By 2023, growth is back down to 2.3%, before sagging to a lacklustre 1.8% in 2024 and 2025.