The UK narrowly avoided falling into recession in 2022 after the economy saw zero growth between October and December, according to the latest figures from the Office for National Statistics (ONS).
Although the economy shrank between July and September, a recession is defined as when the economy contracts for two consecutive three-month periods.
Over 2022, GDP grew by 4%, compared to 7.6% growth in the previous year and the UK economy is still 0.8% smaller than it was before the Covid-19 pandemic.
In December alone the economy fell by 0.5%, partly due to strikes.
Ben Jones, Lead Economist at the CBI, said:
‘We may have avoided a technical recession late last year, but we probably won’t avoid one this year. While we expect that the downturn will be shallow, if we act now, we can make the recession even shorter than predicted.
‘All eyes are on the Chancellor’s March Budget, when businesses will be looking for a bolder approach to tackling labour and skills shortages and falling business investment. In particular, firms will be looking for a permanent replacement to the super-deduction, as well as a focus on innovation and the green economy to help boost economic growth in the years ahead.’
Internet link: ONS website