{"id":114,"date":"2023-03-10T07:02:45","date_gmt":"2023-03-10T13:02:45","guid":{"rendered":"https:\/\/enjoyingthisjourney.com\/uk-economy-avoids-recession-as-gdp-growth-returns-in-january\/"},"modified":"2023-03-10T07:02:45","modified_gmt":"2023-03-10T13:02:45","slug":"uk-economy-avoids-recession-as-gdp-growth-returns-in-january","status":"publish","type":"post","link":"https:\/\/enjoyingthisjourney.com\/uk-economy-avoids-recession-as-gdp-growth-returns-in-january\/","title":{"rendered":"UK Economy Avoids Recession as GDP Growth Returns in January"},"content":{"rendered":"
The UK economy narrowly avoided sliding into recession at the end of last year, according to figures released by the Office for National Statistics (ONS).[0]<\/a><\/sup> GDP grew by 0.3% in January, bringing it back to growth following several rocky months that led to a contraction of 0.5% in December.[1]<\/a><\/sup> The government is likely to count the figures as a win, with less than one week to go until Jeremy Hunt delivers his spring budget.[2]<\/a><\/sup><\/p>\n The services sector grew by 0.5% in January, after falling by 0.8% in December.[1]<\/a><\/sup> The largest contributors to this growth were education, transport and storage, human health activities, and arts, entertainment and recreation activities.[3]<\/a><\/sup> Partial recovery from the repercussions of the strikes in December was seen by postal services.[2]<\/a><\/sup> Output in consumer-facing services also grew by 0.3%, compared to a fall of 1.2% in December, while production output fell 0.3%, versus a growth of 0.3% the month before.[4]<\/a><\/sup><\/p>\n The ONS said the education sector grew by 2.5% in January, following a fall of 2.6% the month before.[5]<\/a><\/sup> This was attributed to the return of more children to school, which is considered to increase the output of the education sector.[5]<\/a><\/sup><\/p>\n Chancellor Jeremy Hunt said: \u201cIn the face of severe global challenges, the UK economy has proved more resilient than many expected, but there is a long way to go. Next week, I will set out the next stage of our plan to halve inflation, reduce debt and grow the economy \u2014 so we can improve living standards for everyone.\u201d[6]<\/a><\/sup><\/p>\n Rachel Reeves, Labour\u2019s shadow chancellor, declared that the GDP figures illustrate the economy is \u201cinching along this Tory path of managed decline\u201d.[6]<\/a><\/sup><\/p>\n In an effort to counter inflation, the Bank of England has increased interest rates to 4%, the highest they have been since 2008.[5]<\/a><\/sup> The upside of this has been advantageous for some savers, yet has caused strain for many homeowners with mortgages.[5]<\/a><\/sup><\/p>\n Overall, today\u2019s figures raise the chances that UK growth could come in flat or only slightly negative in the first quarter overall, making it more likely that the UK avoids a technical recession.[7]<\/a><\/sup> Analysts are also expecting the Office for Budget Responsibility to announce next week that the UK will have a shorter and shallower downturn than previously feared.[0]<\/a><\/sup><\/p>\n 0. <\/span>“UK economy rebounds to grow by 0.3% in January” Evening Standard, 10 Mar. 2023, https:\/\/www.standard.co.uk\/news\/politics\/uk-economy-gdp-growth-january-ons-bank-b1066200.html<\/a><\/p>\n 1. <\/span>“UK's economy returns to growth after rebound in entertainment and transport” NewsChain, 10 Mar. 2023, https:\/\/www.newschainonline.com\/news\/financial-news\/uks-economy-returns-to-growth-after-rebound-in-entertainment-and-transport-324953<\/a><\/p>\n 2. <\/span>“UK economy grows defying the Bank of England's recession fears in win for Jeremy Hunt” Express, 10 Mar. 2023, https:\/\/www.express.co.uk\/finance\/city\/1744631\/UK-economy-grow-Bank-of-England-recession-Jeremy-Hunt-Budget-March<\/a><\/p>\n 3. <\/span>“UK GDP expands 0.3% in February, more than expected” Seeking Alpha, 10 Mar. 2023, https:\/\/seekingalpha.com\/news\/3946305-uk-gdp-expands-03-in-february-more-than-expected<\/a><\/p>\n 4. <\/span>“UK GDP grows by 0.3% in January” Professional Pensions, 10 Mar. 2023, https:\/\/www.professionalpensions.com\/news\/4077335\/uk-gdp-grows-january<\/a><\/p>\n 5. <\/span>“UK economy: Schools and football boost January growth” BBC, 10 Mar. 2023, https:\/\/www.bbc.com\/news\/business-64904333<\/a><\/p>\n 6. <\/span>“Football and private healthcare help increase GDP by 0.3% in January in boost for Chancellor” Daily Mail, 10 Mar. 2023, https:\/\/www.dailymail.co.uk\/news\/article-11843423\/Football-private-healthcare-help-increase-GDP-0-3-January-boost-Chancellor.html<\/a><\/p>\n