Sebastian Mackay, Invesco multi-asset fund manager, comments on the latest UK GDP figures released this morning and outlines the domestic headwinds the UK economy faces in the months ahead.
Sebastian Mackay said:
“A decent final quarter confirmed a strong growth rebound of 7.5% in 2021 from the 9.4% decline in 2020, albeit real GDP remains below its pre-pandemic level.
Looking ahead, UK households face a triple whammy of higher energy prices, an increase in the rate on National Insurance contributions and higher interest rates. Accumulated savings will provide a cushion for wealthier households but little comfort for lower income families.
These domestic headwinds, combined with a backdrop of decelerating global growth indicate a more challenging outlook for the UK economy.”
