# UK: Economy Avoided Recession in 2022, But Challenges Remain

- Link: https://www.directorstalkinterviews.com/uk-economy-avoided-recession-in-2019-but-challenges-remain/4121105256
- Published: 2023-02-10T14:31:26+00:00
- Author: Katherine Hargreaves

The UK economy narrowly avoided a technical recession in 2022, with new figures 
confirming zero growth between October and December. Despite a sharp 0.5% fall in
economic output in December, the Office for National Statistics (ONS) reported no
overall growth for the year. This was due to a combination of factors, including
strikes across health, transport and the postal service, as well as the World Cup
delaying the normal football season.

Chancellor Jeremy Hunt described the figures as showing “underlying resilience”.
However, inflation remains high at 10.5%, close to a 40-year high, meaning families
are still feeling the pain of rising prices.

The Bank of England and International Monetary Fund both predict that the UK economy
will shrink in 2023. But Susannah Streeter from Hargreaves Lansdown commented that
the downturn is likely to be milder and shorter than previously thought, due to 
falling energy prices.

Liberal Democrat MP Sarah Olney said the responsibility for these “gloomy figures”
lies with the UK Government, citing botched budgets, stalled inflation, and a lack
of growth plans.

Overall, today’s figures suggest that while the UK avoided a recession in 2022, 
the economic challenges ahead remain significant.

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