UPDATED 2:27 PM PT – Monday, December 12, 2022
Despite numbers showing a better bounce-back in growth, the U.K. Finance Minister Jeremy Hunt is not highly optimistic.
He says, that overall numbers “confirm that this is a very challenging economic situation.”
New figures show that there was a 0.5% growth in October following September’s 0.6% drop. This was mostly affected by the public holiday for the Queen’s funeral. Data suggests that a U.K. recession is highly likely.
During the three months leading to October, the U.K. economy had experienced the biggest drop since the lockdowns of 2021 due to COVID.
Investors and analyst have painted a bleak outlook for 2023 with the Bank of England.
On Thursday, the financial institution is looking to raise interest rates again for a ninth time in a row to maintain the inflation risk below 11%.
Reacting to the numbers, Hunt said that there was a “tough road” ahead, blaming the surging gas prices and the war in Ukraine for the rising inflation.