The British economy miraculously escapes contraction in the third quarter Economy
The British economy stopped at zero growth in the third quarter of this year. This means that the economy did not contract, but it did not grow either. This is evidenced by the figures of the British statistics agency ONS.
Consumer and government spending fell in the third quarter, as did business investment. In the second quarter, the economy grew slightly by 0.2 percent.
There are fears that the British economy is headed for a long period of recession. This is due to high interest rates in the country, which often hinder economic growth. The British Central Bank, among others, predicts that the economy will not grow next year.
The economic outlook represents a bleak outlook for British Prime Minister Rishi Sunak, who is preparing for elections expected next year. The Conservative Party is not performing well in the polls.
Commenting on the economic data, British Treasury Secretary Jeremy Hunt said that the government’s plan to reduce inflation will help the economy grow again. “High inflation is the biggest impediment to economic growth,” Hunt said.
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