The UK economy recorded zero growth between October and December last year, indicating that the country may have narrowly avoided a recession, according to data from the Office for National Statistics. Darren Morgan, director of economic statistics at the Office for National Statistics (ONS), said: “The economy contracted sharply in December meaning, overall, there was no growth in the economy over the last three months of 2022.
“In December public services were hit by fewer operations and GP visits, partly due to the impact of strikes, as well as notably lower school attendance. Meanwhile, the break in Premier League football for the World Cup and postal strikes also caused a slowdown.
“However, these falls were partially offset by a strong month for lawyers, growth in car sales and the cold snap increasing energy generation.
“Across 2022 as a whole, the economy grew 4%. Despite recent squeezes in household incomes, restaurants, bars and travel agents had a strong year.
“Meanwhile, health and education also began to recover from the effects of the pandemic.”
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Chancellor Jeremy Hunt warned the UK was “not out the woods yet” after ONS data showed the economy narrowly avoided recession between October and December last year.
He said: “The fact the UK was the fastest growing economy in the G7 last year, as well as avoiding a recession, shows our economy is more resilient than many feared.
“However, we are not out the woods yet, particularly when it comes to inflation.
“If we stick to our plan to halve inflation this year, we can be confident of having amongst the best prospects for growth of anywhere in Europe.” Labour’s shadow chancellor called for “urgent measures” to be brought forward to alleviate the cost-of-living crisis after Office for National Statistics data showed the UK recorded zero growth between October and December.
Rachel Reeves MP said: “Today’s figures show us how – despite Britain’s great potential – our economy is stuck in the slow lane.
“We can be a leader in the industries of the future that will help grow our economy.
“And we must bring in urgent measures to prevent yet more harm from the cost of living crisis, using a proper windfall tax on oil and gas giants to stop the energy price cap going up in April so that people have more money in their pockets.
“Built on the rock of economic stability, Labour will tackle the cost of living crisis and get our economy growing, with our Green Prosperity Plan, reform to business rates, and by making the UK the best place to start and grow a business.”
