The UK’s economy will take until 2024 to recover, despite the government’s Growth Plan, Deutsche Bank has warned.
In a downbeat assessment, analysts at Deutsche Bank said it would take until 2024 for UK GDP to return to the level of December 2019, before the pandemic struck.
Deutsche Bank said the government’s tax cuts and energy support scheme would help to add about 0.5 percentage points to UK GDP over the next year relative to its previous forecasts.
However, higher interest rates from the Bank of England would shave off close to 0.8 percentage points from GDP relative to its previous estimates.
Sanjay Raja, a senior economist at Deutsche, said: “Tighter financial conditions… will offset much of [the] gains in fiscal policy.”
