United kingdom. Avoid sluggishness with difficulty
The British economy has evaded Recession in the second half of last yearrecording a growth of 0.1% in the fourth quarter. The preliminary estimate of GDP between October and November, released by the Bank of England in mid-February, showed zero growth.
In the UK, a recession is generally defined as two consecutive quarters of lower GDP, and the economy had already contracted by 0.2% in the third quarter.
“The economy performed slightly stronger in the second half of last year than previously expected, with subsequent data showing that telecoms, construction and manufacturing fared better than previously thought,” said Darren Morgan, director of economic statistics at the UK’s Office for National Statistics, in the quarter. the last “.
“Households saved more last quarter, thanks to the government’s energy bill subsidy program.”
Meanwhile, the UK’s balance of payments deficit with the rest of the world has narrowed, thanks to increased overseas profits for British companies, particularly in the energy sector.
The dominant services sector grew by 0.1%, supported by a nearly 11% jump in travel agencies. The manufacturing sector increased by 0.5%, driven by the pharmaceutical sector, and the construction sector grew by 1.3%.
However, the cost of living crisis has had a significant impact on consumer spending in recent months, with inflation remaining in double digits.
Forecasts updated last week by the Bank of England, which predicted the economy would enter recession in the second half of last year, ruled out the possibility of a recession this year.
The upward revisions to the GDP data for the third and fourth quarters showed that higher inflation had a slightly smaller effect on the economy than previously thought.
Meanwhile, Chancellor of the Exchequer Jeremy Hunt told reporters that the revised GDP figure shows “basic resilience” in the British economy. However, Hunt acknowledged that many people across the country are “faced with real pressure”, with inflation remaining above 10%. Which is what happened in Ukraine (…) This is how we will get back to healthy growth and ease the pressure on families,” Hunt emphasized.
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