UK economy shocks with 0.1% gain in November
BRITAIN’S economy unexpectedly eked out some modest growth in November 2022, reducing the chances that overall figures will show it slipped into a technical recession in the last quarter of the year.
Data from the Office for National Statistics (ONS) on Friday (Jan 13) showed that gross domestic product (GDP) in November 2022 rose 0.1 per cent from the month before. This defied the 0.2 per cent decline predicted by economists in a Reuters poll.
But in the three months to Nov 30, 2022, the economy shrank 0.3 per cent, which was in line with economists’ forecasts. However, the quarter’s slump was mainly driven by a 0.6 per cent fall in output in September 2022, when many businesses closed to mark Queen Elizabeth’s funeral.
Darren Morgan, a statistician at the ONS, said: “The economy grew a little in November, with increases in telecommunications and computer programming helping to push the economy forward. Pubs and bars also did well, as people went out to watch World Cup games.”
The ONS said December 2022’s GDP would need to drop by about 0.5 per cent for fourth-quarter growth to be negative when rounded to one decimal place, assuming no other revisions.
Two consecutive negative quarters are the commonly used definition of a recession in Europe.
Britons are already beset by double-digit inflation, which is squeezing living standards. The government’s budget watchdog has forecast that output will fall this year.
After the GDP data was released, finance minister Jeremy Hunt said: “The most important help we can give is to stick to the plan to halve inflation this year, so we get the economy growing again.” REUTERS
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