UK economy may enter recession in 4Q

LONDON: Goldman Sachs Group Inc expects the United Kingdom economy will slip into recession later this year, with the risk that it could turn out to be a deep contraction amid soaring energy costs.

The UK’s gross domestic product is expected to fall by around 1% through mid-2023, Goldman said in a research note yesterday. Annual output next year will likely shrink by 0.6%, a sharp turnaround from Goldman’s previous estimate of a 1.1% expansion.