By Dominic Lemanski for The Mail On Sunday
01:15 31 December 2023, updated 01:51 31 December 2023
- Economists believe the Bank of England will cut interest rates to help businesses
- Inflation is also expected to ease, with consumer confidence slowly returning
- The economy has forced retailers to close 6,400 stores and cut 37,000 jobs in 2023
The High Street is set to recover from the economic downturn, experts predicted last night.
Economists believe the Bank of England will cut interest rates in 2024 to help businesses.
“Looking ahead, inflation is expected to continue to decline,” said Susanna Streeter, markets analyst at Hargreaves Lansdowne Financial Services.
Nick Carroll, of market research group Mintel, said: “There is cautious optimism that 2024 will be a better year.”
“Inflation is falling and consumer confidence is slowly trending upward from the lows of 2022 and 2023.”
The Center for Retail Research says the cost of living and inflation have forced retailers to close 6,400 stores and cut 37,000 jobs this year.
But Professor Joshua Bamfield warned: “The hoped-for return in 2024 does not look like it will happen until 2025.”
“It will be difficult to get inflation down to 2 percent when there are wars raging over countries that supply food to most of the world, like Ukraine.”
Susannah Streeter, from Hargreaves Lansdowne, added: “Prices will continue to rise, but at a slower pace.”
There are positive signs of recovery, with 34 Asda Express sites opening across the country. Poundland is expanding, and plans to open 75 new stores across the UK.
Mintel’s Nick Carroll added: “Most retailers will be happy to put 2023 behind them – it’s been a tough year as shoppers cut back on spending across the board.”