Output remains below pre-Covid levels while other Group of Seven members have pulled ahead, according to the Office for National Statistics
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The UK economy contracted by more than previously estimated in the third quarter of 2022, lagging further behind other advanced economies, the Office for National Statistics (ONS) reported on Thursday.
The ONS data showed that economic output fell by 0.3% in quarterly terms compared with initial estimates of a 0.2% contraction. The manufacturing and construction sectors have suffered the worst declines.
The report also indicated that in the third quarter, the economy was 0.8% below its 2019 pre-pandemic level, in contrast to other G7 countries that have regained lost ground.
Business investment reportedly dropped by 2.5% in quarterly terms, compared with a previous estimate of a 0.5% decline.
“Looking ahead, the UK likely will continue to underperform. We expect Britain to suffer the deepest recession among major advanced economies in 2023, due to the severity of the headwinds from both monetary and fiscal policy,” stated economist Gabriella Dickens from Pantheon Macroeconomics.
READ MORE: UK economy facing serious challenges – House of Lords
The Bank of England said last month the UK economy was probably already in a recession that could last until the end of 2023. The regulator has approved nine consecutive interest rate increases as it struggles to rein in spiraling inflation.
Earlier this month, the Confederation of Business Industry (CBI), a national lobby group, warned that the UK was facing a decade of lost growth if action isn’t taken.
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