The UK's economic output remains 0.6% below its late 2019 level, making it the only G7 nation yet to recover from the pandemic
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We asked Matt Weller (FOREX.com) for a comment on the UK GDP print released last Thursday. Let's have a look what the analyst said.
Matt Weller (FOREX.com): The UK economy narrowly avoided a recession as it registered 0.1% growth in Q4 2022, up from the initial estimate of zero growth. The Q3 GDP contraction was revised to -0.1%, smaller than initially reported, according to the Office for National Statistics (ONS).
Despite a cost of living crisis, high inflation, and concerns over weak growth prospects, the UK has thus far managed to stay out of recession
Matt Weller (FOREX.com): However, the UK's economic output remains 0.6% below its late 2019 level, making it the only G7 nation yet to recover from the pandemic.
Despite a cost of living crisis, high inflation, and concerns over weak growth prospects, the UK has thus far managed to stay out of recession. The IMF had predicted in January that the UK would be the only G7 country to contract in 2023, largely due to an inflation rate exceeding 10%.
The dominant services sector grew by 0.1%, with travel agents experiencing an 11% increase, indicative of rising demand for holidays. Manufacturing expanded by 0.5%, and construction grew by 1.3%.
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The market implications of this report are limited, given it is a revision to a revision of a report summarizing economic growth from 90-180 days ago, but at the margin, it points to slightly stronger-than-feared growth in the UK.
