The UK economy could experience ‘renewed signs of stress’ for the remainder of the year as it tackles high interest rates, uncertainty and overall low productivity.

The Big Four firm said its forecasts show real GDP growth slowing from 4.1% in 2022 to just 0.4% in 2023 and eventually 0.3% in 2024.

Additionally, inflation remains high and may only return to its 2% target by the latter part of 2024, the report warned. 

With hiring also losing momentum and workers feeling less confident about switching positions, there is still a huge amount of uncertainty hanging over the UK’s future.

Monetary policy will also remain restrictive for some time. The Bank of England voted to hold interest rates unchanged at 5.25% last week, following a dip in inflation for August, which fell from 6.8% to 6.7%.