The UK economy grew by just 0.1% in the third quarter, following stronger growth earlier in the year, according to the Office for National Statistics. Despite a boost in confidence linked to the change of government and a shift in the interest rate cycle, the economy’s growth was sluggish.
Annual GDP rose by 1%, but this was primarily due to population growth, with per capita GDP actually falling 0.1% from the previous quarter and remaining flat year-on-year.
The pound showed little reaction to the figures, trading flat against both the dollar and the euro.
These numbers underscore the difficulties faced by the new Labour government, which is dealing with the economic repercussions of Brexit and the pandemic, as well as longer-term challenges like an ageing population and the uncertainties of a fragmented global trade system.
In a speech on Thursday, Chancellor Rachel Reeves emphasized the importance of free trade, particularly with key partners like the U.S., as the government works to navigate these economic hurdles.
