UK Economy Growth In Q3 Was The Slowest Among G7 Countries
During the 3rd quarter, the British economy's contraction was a lot higher than what the markets initially thought. In fact, the United Kingdom's rank among the G7 countries is at the bottom in terms of economic growth.
For the 3rd quarter, the economic output saw a decline of 0.3% while the estimate was only for -0.2%. This data was revealed by the National Statistics Office of the United Kingdom.
According to the ONS, the quarterly economic output of the UK was skewed due to the funeral of Queen Elizabeth. If we look at this from the ONS perspective, it does make sense for the extra -0.1% change in the economic output.
When we look at the business investments in quarterly terms, it also saw a decline of 2.5%, while the earlier estimate was only 0.5%.
UK Will Underperform In 2023
According to analysts, the United Kingdom's economy will continue to underperform even in 2023. In fact, the United Kingdom could suffer one of the deepest recessions among the other advanced economies. The reason for this has to do with the fiscal and monetary policy adopted by the United Kingdom.
The economic output was around 08.% lower when compared with its value in late 2019. Once again, a reading like this tells us that the economic situation of the UK is very grave.
In total, around 13 manufacturing sectors of the UK saw a decline during the 3rd quarter. In addition, the disposable income of households (inflation-adjusted) also saw a contraction as well.
According to most economists, the current quarter reading of the UK economy will also show a contraction. In fact, many are comparing it with a recession as well.
And in the case of the UK economy avoiding a recession, consumer spending, as well as consumer income, will also take a hit in 2023.
In short, things are looking tough for the United Kingdom, and 2023 could prove to be even more difficult than 2022!