The 海角视频 avoided a recession in the second half of 2022 but new figures showed the economy essentially flatlined between October and December.
Unrounded figures from the Office for National Statistics (ONS) suggested 0.01% growth in the 海角视频 economy over that time, meaning the country did not see two consecutive quarters of declining gross domestic product (GDP) - the technical definition of a recession.
Chancellor Jeremy Hunt said the figures showed the 海角视频 economy was more resilient than many feared but admitted the country was 鈥渘ot out the woods鈥. Opposition politicians have criticised the Government鈥檚 handling of the economy while business groups have warned that tough times are ahead.
Read more: heat pump factory to create 200 new jobs
Mr Hunt said: 鈥淭he fact the 海角视频 was the fastest growing economy in the G7 last year, as well as avoiding a recession, shows our economy is more resilient than many feared. However, we are not out the woods yet, particularly when it comes to inflation.
鈥淚f we stick to our plan to halve inflation this year, we can be confident of having amongst the best prospects for growth of anywhere in Europe.鈥
Labour鈥檚 shadow chancellor Rachel Reeves called for 鈥渦rgent measures鈥 to be brought forward to alleviate the cost-of-living crisis after Office for National Statistics data showed the 海角视频 recorded zero growth between October and December.
She said: 鈥淭oday鈥檚 figures show us how - despite Britain鈥檚 great potential - our economy is stuck in the slow lane. We can be a leader in the industries of the future that will help grow our economy.
鈥淎nd we must bring in urgent measures to prevent yet more harm from the cost of living crisis, using a proper windfall tax on oil and gas giants to stop the energy price cap going up in April so that people have more money in their pockets.鈥
The 海角视频 economy grew by 4% in 2022 as a whole, though it fell by 0.5% in December. The ONS said that the December economy was hit by strikes and the lack of Premier League football, though it had been a strong month for lawyers, car sales and energy production.
David Bharier, head of research at the British Chambers of Commerce, said: 鈥淭oday鈥檚 GDP estimates, while indicating the economy technically avoided a recession, show some worrying developments. Production output fell by 0.2% in Q4 2022, eight of the 14 service sectors saw contractions, and monthly GDP fell by 0.5% in December.
鈥淪mall businesses have seen three years of economic shocks, including lockdowns, global supply chain crises, Brexit, and soaring energy costs. Our research has shown that most small firms have seen no improvements to sales, exports, or investment. Retailers and hospitality firms are among the worst affected by this current anaemic economy.鈥
Federation of Small Businesses policy chair Tina McKenzie said: 鈥淲hile it is positive that the 海角视频 has technically avoided a recession in the second half of last year, the news will come as cold comfort to many thousands of small businesses. In particular, the 0.5% fall in GDP in December is a red flag showing the economy stalled at the end of 2022, just when small firms were hoping for a traditional festive boost."
READ NEXT:
