UK economy narrowly avoided recession last year

    Simpson Wood
    9th March 2023
    Home » Blog Posts » UK economy narrowly avoided recession last year

    The UK narrowly avoided falling into recession in 2022 after the economy saw zero growth between October and December, according to the latest figures from the Office for National Statistics (ONS).

    Although the economy shrank between July and September, a recession is defined as when the economy contracts for two consecutive three-month periods.

    Over 2022, GDP grew by 4%, compared to 7.6% growth in the previous year and the UK economy is still 0.8% smaller than it was before the Covid-19 pandemic.

    In December alone the economy fell by 0.5%, partly due to strikes.

    Ben Jones, Lead Economist at the CBI, said:

    ‘We may have avoided a technical recession late last year, but we probably won’t avoid one this year. While we expect that the downturn will be shallow, if we act now, we can make the recession even shorter than predicted.

    ‘All eyes are on the Chancellor’s March Budget, when businesses will be looking for a bolder approach to tackling labour and skills shortages and falling business investment. In particular, firms will be looking for a permanent replacement to the super-deduction, as well as a focus on innovation and the green economy to help boost economic growth in the years ahead.’

    Internet link: ONS website

    Need Some Advice?

    Looking for some help or a little advice?

    Call today on 01484 534431 or fill in our enquiry form below, and we’ll call you back.

    Budget 2024 Guide

    The Spring Budget was delivered by the Chancellor Jeremy Hunt on Wednesday 6 March. In what was widely expected to be Mr Hunt’s final Budget ahead of an election, speculation…

    Budget 2024 Key measures at a glance

    Following Jeremy Hunt’s budget earlier today we have summarised below the key tax changes and announcements he has made: Our full detailed guide on the Budget and our Tax Tables…

    Clarity on new border checks is vital, says BCC

    The government must clarify plans around new customs processes as firms remain in the dark about crucial aspects of their operation, says the British Chambers of Commerce (BCC). The first…
    From below of delighted aged male entrepreneur in classy outfit standing on street and speaking on cellphone while laughing and looking away

    Over 50s bucking decline in freelance numbers

    Tens of thousands more over 50s are now running their own businesses despite an overall decline in self-employment since 2020, according to the Association of Independent Professionals and the Self-Employed…