Britons are bracing themselves for a difficult 2024, according to research from Quilter, with almost two thirds (61%) expecting the UK to enter a recession.
This compares to just 22% of people who feel confident a recession would be avoided.
The findings follow recent UK GDP data from the Office for National Statistics which revealed UK GDP fell by 0.1% in the third quarter of 2023 and the second quarter’s previously positive figure was revised down to show no growth, while inflation rose from 3.9 to 4%.
Quilter’s research also found that 32% of Britons reported that their current finances and earnings would not be sufficient to allow them to manage their daily expenses in the event of a recession.
Sue Loveridge, financial planner at Quilter, said: “The UK economy has faced an incredibly challenging few years and the strain is now taking a real toll on people’s finances. The UK barely scraped by without a recession in 2023, and our latest research reveals the majority of Brits expect 2024 to have an even worse fate.
“Though the prospect of a recession is daunting, it is not a done deal and for now there is still a chance that the UK avoids one. Inflation is heading in the right direction and interest rates are widely expected to start to fall this year. We are already seeing mortgage rates fall which should ease the pressure on household finances, and we can expect this to continue should the Bank of England opt to reduce rates later in the year.”
Loveridge said there are “plenty of opportunities” available for savers and investors this year and said that cuts to central bank interest rates could act as immediate stimulants to financial markets, with those sat in cash at risk of missing out “on the best days” which could cost them considerably in the long run.
