Many economic experts predicted that the UK would dip into recession in the second half of last year. Latest figures show that they were wrong. But only just - with GDP growth in October, November and December barely registering. The Chancellor Jeremy Hunt said that it showed evidence of "underlying resilience" but warned that the economy is "not out of the woods yet". And the Bank of England still expects the UK to plunge into recession later this year. (Subscribe: ----------------------- Follow us on Instagram - ...(read more)
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The United Kingdom has narrowly avoided a recession, with the latest figures revealing that the country's economy grew by 0.3% in the third quarter of 2019, following a contraction in the second quarter. However, the question on everyone's minds is how long can this trend continue? The UK economy has been on an uncertain path in recent years due to Brexit-related factors such as uncertainty, dwindling consumer confidence, and weakened investment. However, the recent upturn has provided some hope that the economy may be stabilizing. The growth in the third quarter of 2019 was largely driven by the services sector, which expanded by 0.4%. Despite this, the manufacturing and construction sectors declined further by 0.4% and 0.2% respectively, indicating that the UK economy is still facing its fair share of challenges. There are a few reasons why the UK narrowly avoided a recession in the third quarter. One factor is the temporary reduction in Brexit-related uncertainty, following the extension of the UK's departure date from the EU to the end of January 2020. This may have led to increased consumer confidence and business investment in the short-term. Another factor could be the recent cut in interest rates by the Bank of England to 0.75%, making borrowing cheaper and potentially boosting consumer spending. However, this cut may not have a significant impact in the long-term if there is no improvement in the underlying economy. The fact that the manufacturing and construction sectors continue to struggle is a cause for concern, as these industries are crucial for driving economic growth. The ongoing uncertainty surrounding Brexit and the possibility of a no-deal scenario could lead to a further decline in these sectors and damage the overall economy. Also, globally, the growth of the economy is slowing down and major economies like Germany are close to recession, meaning that the UK cannot solely depend on the outside market for increasing its growth. Overall, while the recent resurgence in the UK economy is a positive sign, it is important to remember that this is not necessarily indicative of long-term stability. With the UK elections coming up soon and the prospect of another Brexit deadline extension, it remains to be seen whether the UK can continue to avoid a recession in the long-term. https://inflationprotection.org/how-long-can-the-uk-economy-stave-off-a-recession/?feed_id=98974&_unique_id=6466dc883350b #Inflation #Retirement #GoldIRA #Wealth #Investing #bankofengland #Banking #business #c4 #c4news #Chancellor #channel4news #economic #economicgrowth #economy #gdp #growth #jeremyhunt #money #recession #uk #ukgovernment #UKnews #RecessionNews #bankofengland #Banking #business #c4 #c4news #Chancellor #channel4news #economic #economicgrowth #economy #gdp #growth #jeremyhunt #money #recession #uk #ukgovernment #UKnews
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