Wednesday, December 07, 2022

United Kingdom dodges recession but reaffirms its GDP stagnation

British economy Has managed to dodge the recession for now, though it confirmed its stagnation in the second quarter of the year, when it grew barely 0.2%. The consequences of the energy crisis and the war in Ukraine, exacerbated by Brexit, are taking a toll on the fifth-largest economy on the planet. Office of National Statistics (ONS) has finally revised its growth forecast upwards, which he had originally placed at a 0.1% drop. Activity increased 0.8% in the first quarter, indicating the extent to which this slowdown is occurring.

In its Monetary Policy Committee in September itself, the Bank of England predicted that the British economy was already in the middle of April and June and Which also posted a decline in the third quarter, is already entering a technical recession, The above body’s chief economist, Grant Fitzner, has highlighted that “while household savings fell in the most recent quarter, they saved more than expected during and after the pandemic.”

ONS estimates that services production grew by 0.2% in the second quarter, reflecting relaxation in production and professional, scientific and technical activities in the information and communications sectors; also kept Weakness in wholesale and retail and in the health industries.

The United Kingdom is going through an institutional and economic crisis these days that has raised alarm bells in the markets, with massive debt sales and the collapse of the pound, forcing the Bank of England to intervene immediately. Is. To tackle inflation, the entity this month raised official interest rates by 50 basis points to 2.25%, from 9.9% in August. clashes after the government of Liz Truss announces program for aggressive tax cuts for £44,795 million (approximately 50,000 million euros at the current exchange rate) within the framework of a stimulus of 165,000 million per annum for two years which is almost entirely financed with loans.

Revision of data in the United Kingdom confirms that its economy It still hasn’t recovered to pre-pandemic growth levels COVID’s, contrary to what was thought. In fact, it remains down 0.2% at the end of 2019 – and not up 0.6% as previously thought. The revision in GDP also indicates a more pronounced contraction in 2020 followed by a stronger pandemic recovery. In its worst year of lockdown and shutdown, its GDP contracted by 11% instead of 9.3% calculated.

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