The Office of National Statistics (ONS) will announce the UK’s latest GDP estimation today, but Britain remains on tenterhooks following the third quarter’s flatline.
Gross domestic product (GDP) measures the value of goods and services produced in the UK. The results are used to estimate the size and growth of the economy.
The UK’s economy experienced slight growth in Q1 and Q2, expanding by one percent and two percent, respectively. Nevertheless, due to ongoing stringent fiscal measures aimed at addressing the country’s stubborn inflation rate, the ONS estimated that the economy showed no growth in the period from July to September (Q3).
Chancellor Jeremy Hunt subsequently faced calls to cut taxes to ease the pressure on struggling Britons, however, he maintained such cuts would only “fuel” inflation and that the country “must stick to the plan” to bring rapidly rising costs down.
However, following “stronger than expected” global growth, the Organisation for Economic Co-operation and Development (OECD) forecasted last month that UK GDP could grow as much as 0.5 percent in 2023 (up from 0.3 percent in its previous forecast) and by 0.7 percent in 2024 (down from 0.8 percent).
The International Monetary Fund (IMF) also forecasted UK GDP growth of 0.5 percent in 2023, up from 0.4 percent in its previous forecast.
ONS will announce the latest estimation at 7am today.
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