On Friday Chancellor of the Exchequer Jeremy Hunt warned Britain that the UK economy was not yet out of the economic woods, after data released by the Office for National Statistics showed the nation had just narrowly avoided falling into a recession.

According to the data, the UK’s GDP showed zero growth in the last quarter of 2022, while month on month it had declined 0.5% from November.

In an interview with the Guardian newspaper, Hunt said, “The fact the UK was the fastest growing economy in the G7 last year, as well as avoiding a recession, shows our economy is more resilient than many feared.” 

In the third quarter of 2022, the economy shrank 0.3%. Had there been a second contraction, the country’s economy would have entered a technical recession, defined as two consecutive quarters of negative growth.

Hunt stressed, “However, we are not out (of) the woods yet, particularly when it comes to inflation. If we stick to our plan to halve inflation this year, we can be confident of having amongst the best prospects for growth of anywhere in Europe.”

According to the Bank of England’s latest forecast, the UK will still enter a recession in 2023, however the Bank forecasts that it will be shallower than previously predicted.

Unfortunately, according to a new report by the National Institute of Economic and Social Research (NIESR), 2023 is going to feel like a recession for many in the UK, as soaring inflation, high borrowing costs, and rising energy bills will combine to produce a severe cost of living crisis.