Strike action sees UK economy flatline in February
The UK economy experienced no growth in February due to strikes by public sector workers, according to official figures from the Office for National Statistics (ONS). Although a rise in construction activity was noted, it was offset by walkouts by teachers and civil servants.
The UK saw a 0.4% jump in economic growth in January. Despite February’s flat performance, Chancellor Jeremy Hunt stated that the UK’s economic outlook was “brighter than expected” with GDP growing by 0.1% in the three months to February, and the UK was “set to avoid recession”.
However, the Labour Party claimed that the UK was “lagging behind on the global stage with growth on the floor”, with shadow chancellor Rachel Reeves stating that the reality of growth inching along left families worse off, high streets in decline and a weaker economy vulnerable to shocks.
Strikes by teachers and many civil servants on 1 February were the biggest drag on growth, the ONS said. High energy prices, rising interest rates and weak trade flows have been causing issues for the UK economy for some time.
The International Monetary Fund (IMF) warned on Wednesday that the UK is set to be one of the worst-performing major economies in the world this year.