UK Economy to be ‘Worst Performing in G7’ in 2024

Consumer and business confidence indicators are contracting amid fears that the UK will fall into recession in 2024.

Tokio Marine HCC’s UK Economic Conditions Report analyses the ongoing pessimism in the UK economy from consumers and businesses alike with poor trends set to continue into next year.

This lack of confidence is translating into poor GDP growth predictions, with the Bank of England forecasting that the UK economy will stagnate until 2025. With rising geopolitical tensions, a further deterioration and recession cannot be ruled out.

Inflation has moderated throughout 2023 reaching 4.6% in October 2023, down from 11.1% in late 2022, but this trend will move at a much slower pace over the next year according to the IMF.

Generally, the credit risk in the UK has increased through the course of 2023 and with interest rates elevated and growth falling, this is also likely to continue in 2024. The heightened risk of insolvencies is also likely to persist until at least late 2024 for these same reasons.

With the number of business failures having increased significantly, and the very real risk of a recession, there is a heightened need for appropriate protection such as Credit Insurance.

You can find the full report from Tokio Marine HCC here.