Britain’s economy managed to avoid a recession in the fourth quarter of 2022, analysts at the Office for National Statistics said.
Gross domestic product flatlined in the final quarter of 2022, following a 0.2% fall in the third quarter. This was enough for the UK economy to avoid entering a recession. Notably, the key sign of a recession is a decline in economic activity for two consecutive quarters.
In 2022, the British economy grew by 4%, down from an expansion of 7.6% a year earlier. According to ONS experts, economic activity was hit hard by the wave of strikes and protests sweeping the country due to high energy prices.
Analysts at investment bank JPMorgan believe that the UK will tip into a recession this year. Nevertheless, this downturn is likely to be mild. Earlier, experts estimated a 0.3% decline in the country’s gross domestic product. Later, the bank lifted its forecast to a 0.1% contraction.
The outlook revision reflected lower liquefied natural gas prices and a likelihood that the British government would not raise April electricity bills for households.
