Forecasters at accounting giant EY say that the UK economy is likely to shrink in 2027 if the Strait of Hormuz is not reopened before the middle of next year.
– “If the Strait of Hormuz reopens in the coming months, we expect the UK to avoid a more pronounced downturn, but an extended closure into 2027 would raise inflation and could push the economy into contraction next year,” said the firm’s UK chief economist, Peter Arnold.
– EY said that if the Strait of Hormuz remains shut until early to mid 2027, UK growth could slow to 0.5 percent this year, and the economy will shrink 0.2 percent in 2027.
– But if the strait reopens by September this year, the firm said UK growth could go up from 0.8 percent to 0.9 percent this year, and the economy will expand by 1.2 percent in 2027.
https://aje.news/mcmsi9?update=4824903