London (EFE).- The gross domestic product (GDP) of the United Kingdom remained flat (0.0%) between October and December 2022, so it has avoided going into recession, the National Statistics Office reported this Friday ( ONS).
According to the calculation, the first made by the ONS, the service sector, considered the economic lung of the country, did not grow in the quarter, while the industrial sector fell 0.2% and construction benefited from a slight increase in the 0.3%.
In the previous quarter (July to September), GDP had fallen by 0.3%, so another decline would have meant the official entry of the United Kingdom into recession.
In the whole of 2022, GDP grew 4% compared to the rise of 7.6% the previous year, according to data released today.
ONS director of economic statistics Darren Morgan said today that the economy contracted sharply in December, meaning that overall there was no growth in the economy for the last three months of 2022.
“In December, public services were affected by fewer operations and GP visits, partly due to the impact of the strikes,” he added.
Morgan stressed, however, that these falls were partially offset by the rise in car sales.
“For all of 2022, the economy grew by 4%. Despite recent restrictions on household income, restaurants, bars and travel agencies had a solid year.
The Minister of Economy warns that inflation is high
British Finance Minister Jeremy Hunt warned the media today that the country, despite not entering recession, “is not out of the woods yet” because inflation is high.
“The fact that the UK was the fastest growing economy in the G7 last year, as well as avoiding a recession, shows that our economy is more resilient than many feared,” added the head of Economy.
“If we stick to our plan to halve inflation this year, we can be sure of one of the best growth prospects anywhere in Europe,” he added.
The Bank of England estimates that the UK will enter a recession this year, although it hopes it will be short.
The United Kingdom is facing a crisis due to the sharp rise in inflation, which is at 10.5%, which has forced the Bank of England to raise interest rates.
On the 2nd, the English issuing bank announced a new rise of 0.5 percentage points in interest rates, which went from 3.5% to 4%, its highest level in fourteen years, as part of its plan to curb rising inflation.
In addition, the country’s accumulated debt stood at 2.5 trillion pounds (2.84 trillion euros) at the end of December, which is equivalent to 99.5% of GDP, according to the latest official data.