Britain: Economy shrinks 0.2% in third quarter, amid predictions of prolonged recession

London, Thanasis Gavos

UK GDP contracted by 0.2% in the third quarter of the year, bringing the national economy a step closer to meeting forecasts for lasting recession.

The negative sign in the growth of the quarter is due to the larger than expected contraction of the domestic product in September, specifically by 0.6%. Analysts had expected growth to slow by 0.4% this month.

This is the first trimester with negative growth for more than a year.

The UK economy is therefore 0.2% smaller in terms of gross product produced than in February 2020, i.e. before the pandemic.

The significant decline in the economy’s output in September is partly due to the additional holiday due to her death Queen Elizabeth. Mainly, however, it is attributed according to economists to “continued weakness in household and business confidence, high inflation and higher interest rates”.

A second consecutive quarter of negative growth implies a recession for a country’s economy.

The Bank of England has predicted the UK economy will experience its longest recession in modern history, with a “difficult downward spiral” from late summer until the first half of 2024.

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