UK manages to escape recession but yet to recover its lost output post-COVID; details here

At a time when countries are making attempts to revive their economies following the COVID-19 pandemic, the United Kingdom is also struggling to avoid falling into recession. As per the fresh figures, though the country’s economy made a narrow escape from recession, it showed no growth between October and December. The Gross Domestic Product (GDP) contracted by 0.5 percent during the quarter. According to the Office for National Statistics (ONS), the figures suggest that the country’s Gross Domestic Product has increased by an estimated 4 percent throughout 2022 in comparison to a 7.6 percent expansion in 2021. Thereafter, with the GDP level in the final quarter remaining at 0.8 percent below its pre-COVID levels at the end of 2019, the UK is now the only Group of 7 country that is yet to completely recover its lost output. Notably, the ONS, after revising its figures for the July-September quarter found that the economy has shrunk by 0.2 percent instead of the previous estimate of 0.3 percent. It further stated that there was no growth in the final three months of 2022. Bank of England expects the UK to enter recession in 2023 According to a CNBC report, the Bank of England is still expecting the UK to enter recession in 2023 but states that it will be shorter and less severe than they expected. Speaking on the same, Darren Morgan, ONS Director of Economic Statistics noted that the economic slowdown persisted as public services were hit by fewer operations and General Practitioner visits. Postal strikes and a break in Premier League football in the month of December also contributed to the issue. He also added that health and dedication did see a recovery following the pandemic. On the other hand, UK Chancellor Jeremy Hunt, while sharing concerns about the possible recession, said that the fresh figures show “underlying resilience”. Read all the Latest News, Trending News, Cricket News, Bollywood News, India News and Entertainment News here. Follow us on Facebook, Twitter and Instagram.