The UK’s economy showed no growth in the third quarter, as indicated by the latest official data, presenting a challenge for the Chancellor prior to the Autumn Statement.
The Office for National Statistics reported that the Gross Domestic Product (GDP) remained unchanged over the three months leading to September.
Economists had generally anticipated a slight contraction of the economy by 0.1 percent.
This stagnation brings the economy to the brink of a recession, with the potential for future revisions to push the figures lower. A recession is technically defined by two consecutive quarters of economic decline.
Chancellor Jeremy Hunt remarked, “To grow our economy sustainably, the current priority is to adhere to our plan and tackle inflation decisively.
“The Autumn Statement will outline our strategy to stimulate robust economic growth by spurring investment, encouraging workforce participation, and overhauling public services, thereby driving the growth our nation requires.”
The third quarter’s economic outcome was below the projections made by the Office for Budget Responsibility (OBR), which had anticipated growth, though it matched the Bank of England’s predictions.
The GDP had seen a slight increase of 0.2 percent in the second quarter, following a 0.3 percent rise in the first quarter.
