03/11/2023
UK economy recovery slows
Britain’s economy partially recovered in August, with a marginal growth of 0.2% following a sharp fall in July.
This slow growth has fuelled expectations that the Bank of England’s (BoE) Monetary Policy Committee will vote to maintain its base interest at 5.25% next month.
The BoE halted its run of interest rate increases in September following signs of a slowdown. The next review of rates is 15 December 2023.
Earlier this week, the International Monetary Fund predicted that Britain would be the slowest-growing G7 nation in 2024.
While the UK is not currently in recession, weak growth has been a concern, and the economy is likely to be a key issue in next year’s election.
The Office for National Statistics said the economy needed to grow 0.2% in September to avoid reducing in the third quarter of 2023.
Commenting on August’s GDP figures, David Bharier, head of research at the British Chambers of commerce, said:
“The UK economy is holding up but remains in a precarious state”
“Our researcher is clear about the issues UK firms are facing – three years of economic shocks, high inflation and interest rates, skill shortages, and trade barriers with the European Union.”
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