The UK economy stagnated in the fourth quarter of 2022 and narrowly avoided a technical recession, despite a decline in activity in December, data from the ONS statistical office showed on Friday.
The last month of last year was marked by strikes in the rail sector and adverse weather conditions, and economic activity decreased by 0.5 percent, the statistical office reported.
– The sharp decline in the economy in December generally means that there was no growth in the last three months of 2022, – said ONS statistician Darren Morgan.
In the third quarter, the economy fell by 0.2 percent, due to work stoppages in many companies following the death of Queen Elizabeth.
Thanks to stagnation in the fourth quarter, the UK avoided a technical recession, defined as a decline in the economy for two consecutive quarters.
Economic activity in the UK in the last three months of 2022 was still 0.8 percent weaker compared to pre-pandemic levels, which sets it apart from other major developed economies.
In the entire previous year, the UK economy grew by four percent, significantly slowing down from a 7.6 percent growth in 2021, when it was recovering from the severe consequences of the COVID pandemic.
Finance Minister Jeremy Hunt said the latest data shows that the UK economy is more resilient than expected, but that the danger is not yet over.
– The UK economy is fundamentally resilient, but we cannot breathe easy yet. Inflation is still too high and is causing problems for families across the country, – warned Hunt.
