The UK is currently in, or if not yet very close to a recession after months of shrinking economy and general economic struggles due to various factors. We are all holding our breath and hoping that the measures being put into place by the BOE and the government will somehow be a magic cure, but in reality it looks like we have a tough few months or years ahead.
However, some news outlets today reported that the UK economy has actually grown by 0.5%. Is this true? And is this a sign that things are going in the right direction? The office of national statistics (ONS) reported that in October 2022 the UK economy grew by 0.5% compared to a decline of 0.6% in September 2022. But a long recession is still expected as the ONS reported that gross domestic product (GDP) has shrunk by 0.3% in the three months leading up to October.
Comments On The Report On The UK Economy
Commenting on the shrink in GDP, Chancellor of the Exchequer Jeremy Hunt has commented:
“These figures confirm that this is a very challenging economic situation here and across the world. And it will get worse before it gets better.”
Commenting on the growth in the economy, Hunt says:
“While today’s figures show some growth, I want to be honest that there is a tough road ahead. Like the rest of Europe, we are not immune from the aftershocks of Covid-19, Putin’s war and high global gas prices.”
Several economists have weighed in on the new results from the ONS. In the The Guardian’s coverage of the story, economist David Bharier commented:
“Business confidence has been falling dramatically as firms face into a wall of higher prices and energy bills, increased taxation, and rising borrowing costs. Unless the government helps create a stable environment to allow businesses to invest, the UK faces a long-term loss of competitiveness.”
Louis Mason, content and communications manager at Oportfolio mortgages in London had this to say:
“We all want there to be an economic upturn. So much so that any slight positive is positively received and fought over by financial institutions. In reality, unfortunately we are still going to be struggling into 2023 and possibly beyond. It will get easier, I don’t have any doubt about that, and probably sooner than we all predict. But until then, people will need to stop sitting and waiting and hoping, and start doing. If you are struggling with you finances, with your mortgage, with your insurances, with debts, you need to speak to a financial advisor as soon as possible.”
“If you get the fundamentals of your finance right, then everything else will fall into line and you will find yourself much better off. Take mortgages fore example, if you are heading towards the standard variable rate or are currently on it, you could be paying hundreds or even thousands more a month than you need to! It’s a very simple process to product switch or remortgage to a better deal. Call us at Oportfolio today and we will be able to look at your finances and make sure that you are financially secure.”