UK economy narrowly avoided recession last year
Newly released figures show the UK narrowly avoided falling into recession in 2022 after the economy saw zero growth between October and December.
The economy shrank between July and September 2022.
A recession is when the economy contracts for two consecutive three-month periods.
In December the economy fell by 0.5% partly due to the mass striking across the country.
The Bank of England expects the UK to still fall into recession at some point this year but says it will be shorter and less severe than previously thought.
The ONS’s Darren Morgan said: “In December public services were hit by fewer operations and GP visits, partly due to the impact of strikes, as well as notably lower school attendance.
“Meanwhile, the break in Premier League football for the World Cup and postal strikes also caused a slowdown.”
In 2022, GDP grew by 4% – the biggest increase of all G7 nations for the year. But that compares to 7.6% growth in the previous year and the UK economy is still 0.8% smaller than before the pandemic.
‘Not out the woods when it comes to inflation’
Chancellor Jeremy Hunt said: “The fact the UK was the fastest growing economy in the G7 last year, as well as avoiding a recession, shows our economy is more resilient than many feared.
“However, we are not out the woods yet, particularly when it comes to inflation.”
Inflation – or the rate at which prices are rising – is showing but at 10.5% is close to a 40-year high.
