UK Economy Stagnates on Brink of Recession as Growth Grinds to Halt
-
U.K. economy flatlined in Q3, entering a period of stagnation on the verge of recession. GDP recorded no growth compared to previous quarter.
-
Services sector contracted as highest interest rates since 2008 weighed on housing industry. Manufacturing also slumped.
-
Weak U.K. economy mirrors stagnation in Europe, where eurozone economies contracted. Contrasts with strong growth in U.S.
-
Bank of England forecasts no GDP growth through 2024-2025. Full effect of higher rates yet to be felt.
-
Chancellor expected to focus on getting economy growing again in upcoming budget, but unlikely to make major tax/spending changes.