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Revised figures show the UK economy grew by 0.1 per cent in the fourth quarter of last year – more than in the year before. Economists had earlier said that the economy saw zero growth between October and December.
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Friday morning’s updated figures mean Britain narrowly escaped a technical recession, defined by two-quarters of declining growth. The ONS said the improved performance was driven by growth in the telecommunications, construction and manufacturing sectors.
Darren Morgan, director of economic data at the ONS, said: “The economy performed slightly more strongly in the second half of last year than previously estimated, with later data showing telecoms, construction and manufacturing all rising in the latest quarter initially thought Was.
“Households saved more in the last quarter, their finances boosted by the government’s energy bill support scheme.
“Meanwhile, the UK’s balance of payments deficit with the rest of the world narrowed, driven by increased foreign earnings by UK companies, particularly in the energy sector.”
Earlier this month, the ONS reported an improvement in the economy in January, with GDP growing by 0.3 per cent during the month.
Prime Minister Rishi Sunak had said it showed that “the fundamentals of the economy remain strong” despite a sharp 0.5 per cent decline in GDP in December.
Britain – like many countries in the West – is grappling with a cost of living crisis driven by sky-high energy bills.
Higher gas and electricity costs fueled by Russia’s President Vladimir Putin’s illegal war in Ukraine have begun to kick in but remain above average.
Inflation also remained extremely high – at 10.4 percent last month, up from 10.1 percent in January, led by a rise in food and beverage prices.
The Bank of England raised interest rates following a surprise jump in inflation, which had come down over the past three months.
policy maker on bank monetary policy committee The MPC voted seven to two to raise rates from 4% to 4.25%, but said they expect the economy to grow slightly in the second quarter of the year, which will contract by 0.4% of gross domestic product (GDP). The opposite is true for the decline of The bank had estimated last month.
inflation Despite a surprise rise in consumer price index (CPI) inflation last month to 10.1% from 10.4% in January, it is set to slide back down this year, driven by a rise in food and drink prices.
UK economy avoided recession and grew at end of last year, new figures show
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