The UK has avoided entering recession in 2022 but remains in a tight spot, according to new figures released today by the Office for National Statistics (ONS).
A recession occurs when the economy shrinks for two consecutive quarters. But the British economy will neither grow nor shrink during the last three months of 2022, according to the ONS’s first quarter forecast. decreased by 0.2 percent From July to September.
The British government immediately jumped on the news, Chancellor of the Exchequer Jeremy Hunt said in a statement Today The numbers showed that the UK economy was “more resilient than many had feared”.
Yet, regardless of the data, 2023 will still feel like a recession for many, the National Institute of Economic and Social Research (NIESR) warningAs British population experiences most severe effects survival crisis Between the rising inflation, borrowing costs and energy bills the country has ever seen.
“The focus on the economic crisis faced by the majority of the British population, rather than technicalities, provides a more insightful perspective,” said NIESR economist Paula Bejarano Carbo. Said Politico’s London Playbook.
According to NIESR predictions, one in four households in the UK – seven million households – will not be able to fully pay their food and energy bills in 2023-24 – up from one in five in the previous year.