UK economy shrinks in Q3, raising recession risk

The UK economy contracted in the third quarter, with a revised GDP showing a 0.1% decline from the second quarter, contrary to the initial estimate of zero growth. Additionally, the Office for National Statistics (ONS) downgraded the second-quarter GDP figure, indicating no growth compared to the previously estimated 0.2% expansion. This puts the UK at risk of a technical recession, defined as two consecutive quarters of falling GDP or a prolonged economic downturn. The figures could increase the pressure on the BOE to pivot to rate cuts sooner as momentum in the economy dwindles.



December 23, 2023 at 02:13AM