European Macro Outlook: What's in a Number?

CUSHMAN & WAKEFIELD RESEARCH European Macro Outlook

UK FORECAST TABLE

2020

2021

2022

2023

2024

2025

UK Economy Real GDP

-11.0%

7.6% 836 246 4.0% 2.6% 0.1% 0.9% 1.5%

4.1% 774 271 3.7% 9.0% 2.8% 3.6% 5.2%

-0.3%

1.0%

1.3%

Total Employment

-507

63 64

79 61

67 66

Office-using Employment

27

Unemployment Rate

5.2% 0.9%

4.2% 7.1% 4.5% 4.0% 5.4%

4.3% 3.3% 3.0% 3.7% 4.7% $71.2 2.5% 2.5% 5.6% 8.0%

4.4% 2.1% 2.3% 3.3% 4.4% 2.0% 2.0% 5.6% 7.6% 2.8% 4.7% 5.4%

CPI Inflation

BoE Policy Rate

0.1%

10-Year Govt. Bond Yield

0.3%

BAA Corporate Bond

1.1%

Brent Crude

$45.2

$79.7

$88.7

$83.7

$69.0

Prime Office Sector Rental Growth Capital Value Growth

1.0%

4.1%

4.6%

0.9%

-0.2% 10.7%

-14.5%

-2.9% 5.6% 4.3% 4.9% 2.0% 5.5% 6.1%

Yield

4.7%

4.4%

5.4%

Total (Unelevered) Return Prime Industiral Sector Rental Growth

4.3% 15.2%

-9.8%

6.5% 12.1% 10.9% 34.5%

18.2%

3.2% 3.2% 5.5%

Capital Value Growth

-12.7%

Yield

4.7%

3.9%

5.3%

Total (Unelevered) Return

15.5% 38.3%

-7.9%

8.7% 10.1%

Prime Retail* Sector Rental Growth Capital Value Growth

-16.1%

-9.6%

-0.3% -4.5% 5.8% 0.5%

0.4%

2.8% 2.8% 5.9% 8.7%

2.8% 2.8% 5.9% 8.7%

-26.8% -15.5%

-3.9% 5.9% 3.0%

Yield

5.2%

5.5%

Total (Unelevered) Return

-23.5%

-8.3%

Source: U.K. Office for National Statistics (ONS), Bank of England, Moody’s Investor Services, Cushman & Wakefield Research Forecasts based on Cushman & Wakefield forecasts as of January 2023.

*Prime High Street

14