Deep Dive: UK economy shows signs of rebound but long-term growth outlook remains 'unspectacular'

Structural challenges remain

The UK economy appears to be bouncing back from the technical recession of the second half of last year, but long-term structural challenges are tempering expectations for growth.

Following a 0.2% increase in monthly GDP for January, today's (22 March) UK retail sales figures showed a flatlining in consumer goods purchases last month, contrasting with economist expectations of a 0.4% decline. According to Robert Wood, chief UK economist at Pantheon Macroeconomics, retail sales volumes are on track to rebound strongly in the first quarter, helping the economy to "leave last year's recession behind, as falling inflation boosts consumer spending power". Retail sales beat expectations by holding steady in February A large contributor to the technical recession s...