The UK narrowly avoided recession in 2022, according to the Office for National Statistics (ONS).
The latest ONS economic output figures show zero economic growth in Q4 of 2022, compared to a 0.2% drop in GDP in the previous quarter.
Furthermore, the UK recorded a 4% economic upturn in 2022 - the fastest growth of any G7 country last year. Despite this, the UK remains the only major economy not to have returned to pre-pandemic levels.
Chancellor Jeremy Hunt said that the figures showcased the UK's "underlying resilience" but warned that we are not out of the woods just yet.
Indeed, the Bank of England (BoE) and Office for Budget Responsibility (OBR) still expect the UK to enter recession in 2023 - although the BoE believes this will be less severe than first thought.
Commenting on the UK's economic prospects, James Smith, research director at the Resolution Foundation, said:
"The longer-term picture is more worrying, with the UK economy yet to return to its pre-pandemic size, having suffered a prolonged period of weak growth since the financial crisis.
"However, falling wholesale gas prices offer hope for households and the wider economy - with inflation on track to fall sharply later this year."
Talk to us about your finances.
