UK economy stalls in Q3 and narrowly avoids recession territory

Posted on November 24, 2023   |  

The UK's slow-paced economy didn't see growth from July to September, but it avoided entering a recession.

In September, the economy experienced a modest 0.2% increase, following a revised down growth from 0.2% to 0.1% in August.

The Bank of England (BoE) anticipates zero economic growth next year, delaying expected interest rate cuts to late 2024, contrary to the widely expected mid-2024.

Despite maintaining high rates for 15 years, the BoE grapples with inflation rates significantly surpassing its 2% target.

Throughout the third quarter, the services sector contracted by 0.1%, industrial production remained unchanged, and construction saw a slight 0.1% increase.

Britain's recovery from the COVID pandemic stands at 1.8% above late 2019 levels, although not as robust as the US with over 7% growth from pre-pandemic times, but surpassing Germany's performance.