By Andy Bruce
LONDON (Reuters) – Britain’s economy shrank more than previously estimated in the third quarter, leaving it at the bottom of the Group of Seven leading advanced economies ahead of a weak 2023.
Data showed Thursday that economic output fell 0.3% from the previous quarter, down from the previous estimate of a 0.2% decline, the National Bureau of Statistics said.
The agency said the G7’s data kept the UK’s bottom line in terms of quarterly growth, although readings were subdued due to the bank holiday for Queen Elizabeth’s funeral.
Business investment fell 2.5% in the quarter, compared with a 0.5% decline in the previous first estimate.
“Looking ahead, the UK is likely to continue to perform. We forecast the UK to experience the deepest recession in the major advanced economies in 2023 due to the severity of headwinds from monetary and fiscal policy,” said Gabriella Dickens, economist at Pantheon. Macroeconomics.
The agency said British economic output in the third quarter was 0.8% below the level at the end of 2019, down from the previous estimate of 0.4% and in contrast to other G7 countries that have recovered.
Although the services sector expanded 0.1% in the quarter, declines in manufacturing and construction dragged down the numbers.
Most economists polled by Reuters predicted the economy would contract again in the current quarter, which is generally considered a recession.
((Translation Redação São Paulo, 55 11 5047 2984)) REUTERS CMO
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