The British economy shrank by 0.3% in the third quarter of this year, which is more than the initial estimate of 0.2%, which raises concerns regarding the country entering a long-term recession..
And the data of the National Statistics Office, issued today, Thursday, indicates that this adjustment in the contraction figures came following it was found that the performance of corporate investment was worse than it was initially thought..
This is the first decline in gross domestic product since the beginning of 2021 when Britain was imposing severe restrictions to combat Corona at the beginning of the epidemic, and it comes at a time when families and businesses are facing an acute cost of living crisis.
The longer the volume Britain’s economy It is currently regarding 0.8 percent lower than its level before the Corona epidemic, and Britain is expected to fall into recession during the last three months of the year in light of the impact of high prices on growth..
The contraction does not yet technically represent a recession – two consecutive quarters of contraction – especially following adjusting the second quarter’s contraction by 0.1% to an increase of 0.2%..
And in the middle of the month, raise Bank of England Interest rates increased by 50 basis points, to reach the level of 3.5 percent, which is the highest level of interest since the global financial crisis in 2008, as part of its attempts to control inflation.
The Guardian indicated that the United Kingdom is facing enormous economic challenges that have led to a decline in the standard of living for families that suffer from high costs of energy and food, and in response to these price hikes, the country is witnessing a series of extended strikes in the government and private sectors in order to demand better wages..
In the same context, the US Federal Reserve and the European Central Bank have indicated that they will hold back interest rate hikes in 2023 following forecasting that there is a strong possibility of recession and job losses across the industrialized world.
