The UK economy narrowly avoided a technical recession in 2022, with new figures confirming zero growth between October and December. Despite a sharp 0.5% fall in economic output in December, the Office for National Statistics (ONS) reported no overall growth for the year. This was due to a combination of factors, including strikes across health, transport and the postal service, as well as the World Cup delaying the normal football season.
Chancellor Jeremy Hunt described the figures as showing “underlying resilience”. However, inflation remains high at 10.5%, close to a 40-year high, meaning families are still feeling the pain of rising prices.
The Bank of England and International Monetary Fund both predict that the UK economy will shrink in 2023. But Susannah Streeter from Hargreaves Lansdown commented that the downturn is likely to be milder and shorter than previously thought, due to falling energy prices.
Liberal Democrat MP Sarah Olney said the responsibility for these “gloomy figures” lies with the UK Government, citing botched budgets, stalled inflation, and a lack of growth plans.
Overall, today’s figures suggest that while the UK avoided a recession in 2022, the economic challenges ahead remain significant.
