The Office for National Statistics said U.K. gross domestic product shrank by 0.3% in the final three months of the year, notching the second consecutive quarterly decline.
The Office for National Statistics said U.K. gross domestic product shrank by 0.3% in the final three months of the year, notching the second consecutive quarterly decline.Economists polled by Reuters had produced a consensus forecast of -0.1% for the October to December period. U.K. Finance Minister Jeremy Hunt said that high inflation remains "the single biggest barrier to growth," since it is forcing the Bank of England to keep interest rates firm and stymie economic growth."But there are signs the British economy is turning a corner; forecasters agree that growth will strengthen over the next few years, wages are rising faster than prices, mortgage rates are down and unemployment remains low," he added.Inflation has come down markedly in the U.K.
He noted that some of these hindrances are temporary and have already started to ease, with the inflation print of January undershooting forecasts for a reacceleration.