This is the last article you can read this month
You can read more article this month
You can read more articles this month
Sorry your limit is up for this month
Reset on:
Please help support the Morning Star by subscribing here
BRITAIN is at risk of falling into a recession after revised official figures yesterday revealed that the economy declined between July and September.
Gross domestic product (GDP) fell by a revised 0.1 per cent against the zero growth initially estimated, the Office for National Statistics (ONS) said.
It also flatlined during the second quarter of the year, after prior estimates showed 0.2 per cent growth, painting a bleaker picture for the overall economy.
The changed figures come after the ONS said GDP declined by 0.3 per cent during October, a worse reading than economists had predicted.
If GDP contracts between October and December then the economy will have entered a technical recession, which can be defined as two consecutive quarters of negative growth.
Chancellor Jeremy Hunt said the economic outlook should not be dampened by worse-than-expected figures.
He said: “The medium-term outlook for the UK economy is far more optimistic than these numbers suggest.”
But TUC general secretary Paul Nowak said the figures show the government does not have a proper economic plan.
He said: “This year ends with another set of dismal growth figures and with the UK teetering on the brink of recession.
“We can’t go on like this. Our economy is stuck in a doom loop and working people are paying the price as unemployment rises and living standards fall.
“The Conservatives got us into this mess. They don’t have a plan for getting us out of it.”
Prime Minister Rishi Sunak had pledged at the start of 2023 to “grow the economy” as part of his five pledges for the year.
Labour shadow chancellor Rachel Reeves said the revised GDP figures show he has failed to meet his promise.
She said: “Rishi Sunak is a Prime Minister whose legacy is one of failure.
“He failed to beat Liz Truss, he failed to cut waiting lists, he failed to stop the boats and now he has failed to grow the economy.
“Thirteen years of economic failure under the Conservatives have left working people worse off with higher bills, higher mortgages and higher prices in the shops.”
