LONDON – Britain’s economy grew 0.5% in October, official data showed today, after a sharp fall the previous month in part because of the national holiday for Queen Elizabeth II’s funeral.
Gross domestic product fell 0.6% in September after businesses closed for the royal funeral, and Britain’s economy shrank by 0.2% in the third quarter, according to the Office for National Statistics (ONS).
Darren Morgan, ONS director of economic statistics, said the economy was helped especially by car sales which “rebounded after a very poor September, while the health sector also saw a strong month”.
The ONS said in its statement today that in the three months to October, the economy contracted by 0.3%.
Britain’s Finance Minister Jeremy Hunt said in a statement that despite the figures showing growth, “there is a tough road ahead”.
“High inflation, exacerbated by (Russian President Vladimir) Putin’s illegal war, is slowing growth across the world, with the IMF predicting a third of the world economy will be in recession this year or next,” he said.
British inflation stands above 11%, the highest level in more than 40 years.
The Bank of England has predicted the UK economy would contract in the final quarter of 2022, meaning the economy was in a recession.
The technical definition of recession is two quarters of contraction in a row. – AFP, December 12, 2022
