Chances Of Recession In 2025 Uk. If interest rates are kept high for long enough, the risk is that the economy slips into recession, which invariably results in an increase in the unemployment rate as businesses are. The uk economy enters 2025 facing a complex set of challenges but also showing signs of resilience.

It looks as though it will rise further through the spring, but then, maybe, will start to fall so that by the end of the year it will be back to 2 per cent. “the risk of a recession has suddenly become real,” paul dales, chief uk economist at capital economics said.