UK Economy avoids a recession in 2022 by the thinnest of margins
- GDP falls 0.5% in December
- This follows GDP growth of 0.1% in November
- Q4 GDP was flat, UK avoids recession for 2022
- Cold weather and the postponement of premier league matches contributed to a very subdued GDP report for December
- Modest growth in construction helps the UK to avoid recession
“A modest decline in GDP for December was a little weaker than expected. Nonetheless, it was enough to avoid what was widely predicted to be a recession in 2022. This release paints a very subdued picture for the state of the economy in Q4, although exceptionally cold weather and the postponement of premier league matches seem to have distorted the figures somewhat."
Jonathan Moyes, Head of Investment Research at Wealth Club comments.
"The release will do little to sway the opinions of economic forecasters. It remains a brave call to signal a turning point in sentiment for the UK. However, there does appear to be a more optimistic consensus forming. The Bank of England upgraded its outlook for the economy last week, energy prices are falling sharply, China is reopening, and interest rate expectations have eased significantly.”
