The UK economy managed to avoid a technical recession in the fourth quarter, but it is set to undergo a challenging period ahead as high interest rates and inflation squeeze disposable income of households.
Gross domestic product stabilized in the final quarter of 2022, as expected, after shrinking 0.2 percent in the third quarter, data released by the Office for National Statistics showed Friday.
The flat GDP helped the UK to avert a technical recession, which is defined as two consecutive quarters of negative growth. However, partly due to strikes, GDP fell 0.5 percent in December, following a 0.1 percent rise in November. Economists had forecast a moderate 0.3 percent contraction.
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June 19, 2026 16:46 ET Major central banks continued to dominate the economic news flow this week too, led by the Federal Reserve, as they announced their latest policy decisions. The Federal Reserve policy session was in focus as it was the first to be led by the new chief Kevin Warsh. In Europe, central banks of the U.K. and Switzerland announced their rate decisions. In Asia, the Bank of Japan drew attention for its policy moves, while data out of China threw some light on the state of the economy.