BRITAIN’S economy will enter recession until the summer as a shrink of about 0.2 per cent each quarter between October and June is expected, economists have warned.

The decline will result in a 0.3 per cent fall in gross domestic product (GDP) for 2023, the forecasting group EY Item Club predicted in its autumn prediction, released today.

The group has significantly downgraded its previous summer forecast, which estimated the economy would grow by 1 per cent in 2023.

A combination of high energy prices, surging inflation, rising interest rates and global economic weakness have driven up the likelihood of a recession.

An economy enters a technical recession when its GDP falls for two or more consecutive quarters.

The forecasters said that the economy is expected to expand 2.4 per cent in 2024 and 2.3 per cent in 2025 unless Britain faces further economic shocks.

Chairman Hywel Ball said: “There are very significant risks to the forecast, with the potential for further surprises or global instability creating additional drags on growth.

“Businesses will need to think very carefully about their resilience and plan for different scenarios, while also being mindful of the support they provide to their customers and employees.”