G7 economies in lead except UK
2022.12.22 07:21
G7 economies in lead except UK
Budrigannews.com – According to data released on Thursday, Britain’s economy contracted more than initially thought in the third quarter of this year, placing it last among the Group of Seven major advanced nations ahead of what looks to be a disastrous 2023.
According to the Office for National Statistics, economic output decreased by 0.3% in quarterly terms, compared to a previous estimate of -0.2%.
The ONS stated that the data placed Britain at the bottom of the G7 for quarterly growth, despite the fact that the readings were slightly skewed downward due to the one-time bank holiday for Queen Elizabeth’s funeral.
In terms of the quarter, business investment decreased by 2.5 percent, exceeding the initial estimate of 0.5 percent.
“The UK’s underperformance is likely to continue in the future. According to Pantheon Macroeconomics economist Gabriella Dickens, “Due to the severity of the headwinds from both monetary and fiscal policy, we expect Britain to suffer the deepest recession among major advanced economies in 2023.”
In contrast to other G7 nations that have recovered, the ONS reported that British economic output in the third quarter was 0.8% below its level in late 2019. This was lower than the previous estimate of 0.4%.
The headline figure was lowered due to declines in manufacturing and construction, but the dominant services sector expanded by 0.1% in the quarter.
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According to the ONS, all 13 manufacturing subsectors experienced declines in the third quarter, and inflation-adjusted household disposable income is expected to contract for the fourth quarter.
According to some analysts, a recession is one in which the economy contracts again in the current quarter, as predicted by the vast majority of economists surveyed by Reuters.
