UK Energy Shock Could Trigger Recession

Deutsche Bank cuts UK GDP growth forecast to 0.35‑0.7% in 2026 amid a massive global energy price shock.
UK unemployment rose nearly one percentage point last year, heightening risk of rapid economic slide as energy costs surge.
The shock is deemed stagflationary, squeezing real disposable incomes while creating deep uncertainty for domestic firms and investment.
Analysts say inflation upside remains a concern, yet growth impact will dominate the Bank of England narrative, pressuring UK assets.