The economy of the United Kingdom (U.K.) grew 0.1% in November, beating the expectations of economists who had forecast a 0.2% contraction for the month.
According to the U.K. Office for National Statistics, the better-than-expected economic performance in November means that Britain likely averted a technical recession in the fourth quarter of 2022.
The U.K. economy contracted 0.3% in last year’s third quarter, but after a 0.5% expansion in October and the surprise 0.1% growth in November, a technical recession defined as two consecutive quarters of negative growth appears to have been avoided.
Despite the positive monthly surprise in November, the government statistics agency said that a recession in the U.K. has likely only been delayed rather than averted.
The Bank of England has forecast that the U.K. economy will experience at least a four-quarter (full year) recession, which would be the longest in its history.
The central bank is likely to continue raising interest rates as inflation across the U.K. continues to run into the double digits and remains near a 40-year high.
The U.K. is experiencing a cost-of-living crisis caused by soaring food and energy prices, as well as growing labour strikes and pressure on the country’s healthcare system.
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