Economy grew slightly to avoid recession, says revised official data

The UK’s economy grew slightly in the final three months of 2022, according to revised official figures.

The Office for National Statistics (ONS) had previously reported 0.0% growth in gross domestic product (GDP) at the end of last year, meaning the UK avoided a recession by the skin of its teeth.

Revised figures, however, now show that GDP increased by 0.1% over the quarter.

A recession is generally defined in the UK as two quarters of declining GDP in a row, and the economy contracted 0.2% in the third quarter.

The revision more firmly indicates that the country avoided a recession during the second half of 2022.

ONS director of economic statistics Darren Morgan said: “The economy performed a little more strongly in the latter half of last year than previously estimated, with later data showing telecommunications, construction and manufacturing all faring better than initially thought in the latest quarter.

“Households saved more in the last quarter, with their finances boosted by the Government’s energy bill support scheme.

“Meanwhile, the UK’s balance of payments deficit with the rest of the world narrowed, driven by increased foreign earnings by UK companies, particularly in the energy sector.”

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