UK economy remains flat in final quarter of 2022, narrowly avoiding recession

LONDON

The UK gross domestic product remained flat between October and December 2022, narrowly avoiding a recession, new figures showed Friday.

According to the Office for National Statistics (ONS), the UK’s monthly GDP is estimated to have fallen by 0.5% in December 2022, following growth of 0.1% in November.

On a quarterly basis, the British economy saw zero growth in the three months to December, compared with the three months to September, the ONS data shows.

“The fact the UK was the fastest growing economy in the G7 last year – as well as avoiding recession – shows our economy is more resilient than many feared,” Jeremy Hunt, chancellor of the exchequer, said on Twitter.

“We are not out the woods yet. It is a tough time for many. We need to stick to our plan to halve inflation this year,” added the Treasury chief.

According to the International Monetary Fund’s latest economic forecast, the British economy is expected to contract by 0.6% this year, as the only G7 country remaining in negative territory.

The ONS said services also fell by 0.8% in December 2022, after a rise of 0.2% in November 2022 due to slower human health and education activities.

In the UK, construction remained flat in the same period, following a drop of 0.5% in November.

However, production output grew 0.3% in the same period as electricity, gas, steam and air conditioning supply became the largest contributor to the production sector’s growth.

• domestic
• Economy in the G7
• International Monetary Fund
• Office for National Statistics