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Britain’s GDP fell by 0.2 p.c from July to September of this yr, in keeping with estimates launched Friday by the Workplace for Nationwide Statistics.
If the financial system contracts for a second successive quarter over the ultimate three months of this yr, the U.Okay. could have formally entered a recession. Final week, the Financial institution of England warned the U.Okay. was at risk of heading into the longest recession in a century, lasting till the center of 2024.
“I’m beneath no phantasm that there’s a powerful highway forward — one which would require extraordinarily tough selections to revive confidence and financial stability,” U.Okay. Chancellor Jeremy Hunt mentioned in an announcement Friday morning. “To attain long-term, sustainable development, we have to grip inflation, steadiness the books and get debt falling. There isn’t any different means.”
Hunt is because of set out his fiscal plans in a funds assertion on November 17, with tax rises and spending cuts extensively anticipated.
The ONS mentioned the month-to-month estimates present that GDP fell by 0.6 p.c in September, however harassed that month’s figures had been negatively affected by an extra financial institution vacation held for the state funeral of Queen Elizabeth II.
Actual family expenditure for the third quarter fell by 0.5 p.c, in keeping with the ONS estimates.
Rachel Reeves, the shadow chancellor from the opposition Labour Get together, mentioned: “Britain’s distinctive publicity to financial shocks has been all the way down to a Conservative-led decade of weak development, low productiveness and underinvestment and widening inequality.”
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