{"id":3064,"date":"2023-01-13T15:28:26","date_gmt":"2023-01-13T15:28:26","guid":{"rendered":"https:\/\/londonpost.news\/?p=3064"},"modified":"2023-01-13T15:30:46","modified_gmt":"2023-01-13T15:30:46","slug":"world-cup-drinkers-boost-uk-gdp-reduce-recession-risk","status":"publish","type":"post","link":"https:\/\/brusselsindependent.com\/be\/brusselsindependent\/world-cup-drinkers-boost-uk-gdp-reduce-recession-risk\/2023\/01\/13\/admin1\/","title":{"rendered":"World Cup drinkers boost UK GDP, reduce recession risk"},"content":{"rendered":"

LONDON<\/span> (Reuters)<\/span> Jan, 13–<\/span> The<\/span> UK<\/span> economy<\/span> unexpectedly<\/span> showed<\/span> some<\/span> growth<\/span> in<\/span> November<\/span> after<\/span> World<\/span> Cup<\/span> boosts<\/span> in<\/span> drinker<\/span> and<\/span> video<\/span> game<\/span> sales,<\/span> unlikely<\/span> to<\/span> be<\/span> already<\/span> in<\/span> recession<\/span> However,<\/span> the<\/span> outlook<\/span> for<\/span> 2023<\/span> remains<\/span> grim.<\/span>
\n<\/span>
\n<\/span>Gross<\/span> domestic<\/span> product<\/span> he<\/span> rose<\/span> 0.1%<\/span> from<\/span> October.<\/span> Friday’s<\/span> National<\/span> Bureau<\/span> of<\/span> Statistics<\/span> figure<\/span> beat<\/span> all<\/span> forecasts<\/span> in<\/span> a<\/span> Reuters<\/span> poll<\/span> of<\/span> economists,<\/span> which<\/span> showed<\/span> a<\/span> rise<\/span> of<\/span> 0.2.<\/span>
\n<\/span>
\n<\/span>The<\/span> growth<\/span> surprise<\/span> means<\/span> that<\/span> production<\/span> would<\/span> have<\/span> to<\/span> plunge<\/span> about<\/span> 0.5%<\/span> in<\/span> December<\/span> for<\/span> the<\/span> UK<\/span> to<\/span> record<\/span> its<\/span> second<\/span> straight<\/span> quarter<\/span> of<\/span> GDP<\/span> decline.<\/span> This<\/span> is<\/span> the<\/span> commonly<\/span> used<\/span> definition<\/span> of<\/span> recession<\/span> in<\/span> Europe.<\/span>
\n<\/span>
\n<\/span>Britain,<\/span> the<\/span> world’s<\/span> sixth-largest<\/span> economy,<\/span> shrank<\/span> by<\/span> 0.3%<\/span> in<\/span> the<\/span> three<\/span> months<\/span> to<\/span> the<\/span> end<\/span> of<\/span> September,<\/span> affected<\/span> by<\/span> business<\/span> closures<\/span> to<\/span> mark<\/span> Queen<\/span> Elizabeth’s<\/span> funeral.<\/span>
\n<\/span>
\n<\/span>HSBC<\/span> economist<\/span> Liz<\/span> Martins<\/span> said<\/span> the<\/span> UK<\/span> could<\/span> avoid<\/span> a<\/span> recession<\/span> if<\/span> the<\/span> wind<\/span> picked<\/span> up.<\/span> “Going<\/span> forward,<\/span> we<\/span> expect<\/span> GDP<\/span> to<\/span> contract<\/span> through<\/span> the<\/span> third<\/span> quarter<\/span> of<\/span> this<\/span> year<\/span> as<\/span> consumer<\/span> spending<\/span> is<\/span> likely<\/span> to<\/span> weaken<\/span> as<\/span> pressure<\/span> on<\/span> household<\/span> real<\/span> incomes<\/span> increases,”<\/span> said<\/span> Thomas<\/span> Pugh,<\/span> an<\/span> economist<\/span> at<\/span> accounting<\/span> firm<\/span> RSM<\/span> UK.<\/span> there<\/span> are,\u201d<\/span> he<\/span> said.<\/span>
\n<\/span>
\n<\/span>High<\/span> inflation<\/span> sparked<\/span> a<\/span> wave<\/span> of<\/span> strikes<\/span> by<\/span> public<\/span> sector<\/span> and<\/span> railroad<\/span> workers<\/span> demanding<\/span> higher<\/span> wages.<\/span>
\n<\/span>
\n<\/span>“The<\/span> most<\/span> important<\/span> thing<\/span> we<\/span> can<\/span> do<\/span> to<\/span> help<\/span> is<\/span> stick<\/span> to<\/span> our<\/span> plan<\/span> to<\/span> halve<\/span> inflation<\/span> this<\/span> year<\/span> and<\/span> get<\/span> the<\/span> economy<\/span> back<\/span> on<\/span> track,”<\/span> Treasury<\/span> Secretary<\/span> Jeremy<\/span> Hunt<\/span> said.<\/span>
\n<\/span>
\n<\/span>The<\/span> Bank<\/span> of<\/span> England<\/span> he<\/span> predicted<\/span> in<\/span> November<\/span> that<\/span> inflation<\/span> would<\/span> drop<\/span> to<\/span> around<\/span> 5%<\/span> by<\/span> the<\/span> end<\/span> of<\/span> the<\/span> year.<\/span> Investors<\/span> expect<\/span> the<\/span> BoE<\/span> to<\/span> raise<\/span> interest<\/span> rates<\/span> from<\/span> 3.5%<\/span> to<\/span> 4%<\/span> on<\/span> February<\/span> 2.<\/span> 2<\/span> because<\/span> it<\/span> seeks<\/span> to<\/span> eradicate<\/span> underlying<\/span> inflationary<\/span> pressures.<\/span>
\n<\/span>
\n<\/span>Britain’s<\/span> large<\/span> services<\/span> sector<\/span> was<\/span> the<\/span> best-performing<\/span> part<\/span> of<\/span> the<\/span> economy<\/span> in<\/span> November,<\/span> with<\/span> output<\/span> up<\/span> 0.2%<\/span> in<\/span> the<\/span> same<\/span> month<\/span> despite<\/span> widespread<\/span> rail<\/span> and<\/span> postal<\/span> strikes.<\/span> .<\/span>
\n<\/span>
\n<\/span>Much<\/span> of<\/span> the<\/span> increase<\/span> reflected<\/span> people<\/span> heading<\/span> to<\/span> pubs<\/span> to<\/span> watch<\/span> the<\/span> men’s<\/span> World<\/span> Cup,<\/span> according<\/span> to<\/span> the<\/span> ONS,<\/span> with<\/span> spending<\/span> on<\/span> food<\/span> and<\/span> drink<\/span> up<\/span> 2.2%<\/span> and<\/span> spending<\/span> on<\/span> video<\/span> games<\/span> early<\/span> in<\/span> the<\/span> run-up<\/span> to<\/span> Christmas.<\/span> is<\/span> also<\/span> reflected.<\/span>
\n<\/span>
\n<\/span>Manufacturing<\/span> output<\/span> fell<\/span> by<\/span> 0.5%<\/span> due<\/span> to<\/span> a<\/span> drop<\/span> in<\/span> pharmaceutical<\/span> production,<\/span> which<\/span> was<\/span> often<\/span> volatile.<\/span>
\n<\/span>
\n<\/span>GDP<\/span> fell<\/span> by<\/span> 0.2<\/span> percentage<\/span> points<\/span> in<\/span> November<\/span> due<\/span> to<\/span> the<\/span> seasonal<\/span> decline<\/span> in<\/span> COVID-19<\/span> vaccines.<\/span> The<\/span> UK’s<\/span> goods<\/span> trade<\/span> deficit<\/span> widened<\/span> to<\/span> \u00a315.6bn<\/span> ($19.1bn)<\/span> in<\/span> November,<\/span> slightly<\/span> above<\/span> the<\/span> \u00a314.9bn<\/span> forecast<\/span> in<\/span> a<\/span> Reuters<\/span> poll.<\/span>
\n<\/span>
\n<\/span>Trade<\/span> with<\/span> the<\/span> European<\/span> Union<\/span> has<\/span> been<\/span> affected<\/span> by<\/span> Brexit,<\/span> but<\/span> the<\/span> extent<\/span> is<\/span> difficult<\/span> to<\/span> assess<\/span> due<\/span> to<\/span> changes<\/span> in<\/span> data<\/span> collection,<\/span> discrepancies<\/span> between<\/span> UK<\/span> and<\/span> her<\/span> EU<\/span> data,<\/span> and<\/span> the<\/span> impact<\/span> of<\/span> the<\/span> pandemic.<\/span>
\n<\/span>
\n<\/span>HSBC’s<\/span> Martins<\/span> said<\/span> exports<\/span> have<\/span> increased<\/span> by<\/span> nearly<\/span> 20%<\/span> since<\/span> June,<\/span> and<\/span> his<\/span> latest<\/span> ONS<\/span> data<\/span> show<\/span> that<\/span> exports<\/span> to<\/span> the<\/span> EU<\/span> are<\/span> now<\/span> up<\/span> 4.5%<\/span> from<\/span> pre-pandemic<\/span> lows,<\/span> while<\/span> exports<\/span> outside<\/span> the<\/span> EU<\/span> are<\/span> up<\/span> by<\/span> 4.5%.<\/span> exports<\/span> have<\/span> increased<\/span> his<\/span> 4.5%.<\/span> The<\/span> EU<\/span> is<\/span> 0.4%<\/span> above<\/span> pre-pandemic<\/span> levels.<\/span><\/p>","protected":false},"excerpt":{"rendered":"

LONDON (Reuters) Jan, 13– The UK economy unexpectedly showed some growth in November after World Cup boosts in drinker and video game sales, unlikely to be already in recession However, the outlook for 2023 remains grim. Gross domestic product he rose 0.1% from October. Friday’s National Bureau of Statistics figure beat all forecasts in a […]<\/p>","protected":false},"author":2,"featured_media":3068,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"tdm_status":"","tdm_grid_status":""},"categories":[1,23,372],"tags":[285,674,736,737,738],"jetpack_featured_media_url":"https:\/\/brusselsindependent.com\/wp-content\/uploads\/2023\/01\/cup.webp","amp_enabled":true,"_links":{"self":[{"href":"https:\/\/brusselsindependent.com\/be\/wp-json\/wp\/v2\/posts\/3064"}],"collection":[{"href":"https:\/\/brusselsindependent.com\/be\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/brusselsindependent.com\/be\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/brusselsindependent.com\/be\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/brusselsindependent.com\/be\/wp-json\/wp\/v2\/comments?post=3064"}],"version-history":[{"count":2,"href":"https:\/\/brusselsindependent.com\/be\/wp-json\/wp\/v2\/posts\/3064\/revisions"}],"predecessor-version":[{"id":3067,"href":"https:\/\/brusselsindependent.com\/be\/wp-json\/wp\/v2\/posts\/3064\/revisions\/3067"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/brusselsindependent.com\/be\/wp-json\/wp\/v2\/media\/3068"}],"wp:attachment":[{"href":"https:\/\/brusselsindependent.com\/be\/wp-json\/wp\/v2\/media?parent=3064"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/brusselsindependent.com\/be\/wp-json\/wp\/v2\/categories?post=3064"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/brusselsindependent.com\/be\/wp-json\/wp\/v2\/tags?post=3064"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}