UK Economy Faces Challenges Amid Rising Energy Prices, Says KPMG Economist

KPMG UK's Chief Economist, Yael Selfin, has highlighted concerns about the UK's economic outlook. According to Jin10, Selfin noted in a report that the UK economy had a challenging start to the year, with economic activity expected to weaken further due to significant increases in energy prices. Official data showed that the UK's GDP growth stalled in January. Selfin anticipates that this weak momentum continued into February, with further economic slowdown likely from March onwards. Investors currently expect the Bank of England to maintain higher interest rates for an extended period in response to the energy shock. This situation poses challenges for businesses already grappling with rising energy and other input costs. Selfin warned that, given the weakening growth prospects and increasing cost pressures, companies are likely to reduce their investment plans over the coming year.