UK economy avoids recession as GDP unexpectedly inches up 0.2% | The Sun

THE UK economy grew 0.2% over the three months to June, the Office for National Statistics has revealed.

The ONS previously said there was a 0.1% fall in Gross Domestic Product (GDP) for the quarter – between April to June.

It means the economy grew slightly when previously it was thought to be shrinking.

It indicates the country is not currently in a recession.

The Bank of England warned that the economy will officially enter recession by the end of the month.

A country is in recession when its economy shrinks over a sustained period of time, rather than growing normally.

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It takes two consecutive quarters of decline for economists to qualify a downturn as recession.

The services and construction sectors were the key drivers behind marginal growth.

The services sector grew output by 0.2%, which went up to 1.1% for construction.

Meanwhile, growth has been "easing" in the science, retail and health industries.

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The UK's recovery from the fallout of Covid has also been revised down in the ONS' latest figures.

"The level of real GDP is now estimated to be 0.2% below where it was pre-coronavirus at Quarter 4 2019, downwardly revised from previous estimates of 0.6% above," the ONS said.

It comes as the UK's financial markets have taken a battering this week after new prime minister Liz Truss and Chancellor Kwasi Kwarteng revealed a tax cuts bonanza in the mini Budget.

The value of the pound tumbledafter the swathe of tax cuts were revealed.

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