An economist has defied those who would blame the UK’s economic plight on Brexit saying many countries are struggling with their growth.
The Office of National Statistics (ONS) has announced the UK’s latest GDP estimation today, with Britain recording zero growth in the three months to October.
Independent economist Julian Jessop said: “Monthly GDP can be volatile but the 0.3 percent m/m fall in October is disappointing, with services, manufacturing and construction all down. Big picture – UK economy is flatlining.
“Ps. I see the usual suspects are already crying ‘Brexit!’ The reality is that all G7 economies are struggling (bar the US). Indeed, GDP contracted in Q3 in France, Germany, Canada and Japan.”
For the month to October, GDP – which measures the value of goods and services produced in the UK – actually fell by 0.3 percent. GDP results are used to calculate the size and growth of the economy.
The UK’s economy experienced slight growth in Q1 and Q2, expanding by one percent and two percent, respectively. Nevertheless, due to ongoing stringent fiscal measures aimed at addressing the country’s stubborn inflation rate, the ONS estimated that the economy showed no growth in the period from July to September (Q3).
Chancellor Jeremy Hunt subsequently faced calls to cut taxes to ease the pressure on struggling Britons, however, he maintained such cuts would only “fuel” inflation and that the country “must stick to the strategize” to bring rapidly rising costs down.
However, following “stronger than expected” global growth, the Organisation for Economic Co-operation and Development (OECD) forecasted last month that UK GDP could grow as much as 0.5 percent in 2023 (up from 0.3 percent in its previous forecast) and by 0.7 percent in 2024 (down from 0.8 percent).
The International Monetary Fund (IMF) also forecasted UK GDP growth of 0.5 percent in 2023, up from 0.4 percent in its previous forecast.
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