Retail, Car Leasing, and Computer Games Sectors Drive GDP Growth
Figures show that Black Friday shoppers helped the economy bounce back better than expected in November. Strong performances in the retail, car leasing, and computer games sectors resulted in a 0.3% expansion of GDP.
Services Sector Plays Key Role in November's Improvement
The services sector grew by 0.4%, making it the biggest contributor to the overall improvement in November. This is welcome news for the Chancellor, as it narrows the possibility of a recession.
Experts Warn of Possible Recession
Despite the growth in November, experts warn that the UK is on the verge of a technical recession. The economy shrank by 0.2% between July and September, and two consecutive quarters of contraction would classify as a recession. Additionally, a contraction or flat output in December could further heighten the risk.
Tax Cuts and Lower Taxes for Growth
Chancellor Jeremy Hunt acknowledges the slower growth in November, but highlights the importance of tax cuts for businesses and workers in positioning the UK for strong growth. He notes that advanced economies with lower taxes have experienced more rapid growth.
Experts Suggest Mild Recession or Stagnation
Analysts offer differing views on the potential recession. Sandra Horsfield of Investec suggests that it is touch-and-go whether the economy tipped into a technical recession in the second half of 2023, but suggests that a better description might be stagnation. Richard Carter of Quilter Cheviot adds that the slow growth puts pressure on the Bank of England to cut interest rates and stimulate the economy.
Did you miss our previous article…
https://hellofaread.com/money/burberry-shares-fall-as-luxury-fashion-house-faces-slowdown-in-demand/
