The British economy posted no growth in this year’s third quarter as inflation continues to limit growth across the United Kingdom (U.K).
Gross domestic product (GDP) showed no quarterly growth in the three months ended Sept. 30 following an increase of 0.2% in the previous second quarter of the year.
On an annual basis, Britain’s Q3 GDP rose 0.6% from the same quarter of 2022.
U.K. Finance Minister Jeremy Hunt said that high inflation remains the “single greatest barrier to economic growth,” with the Consumer Price Index (CPI) in Britain currently at an annualized rate of 6.7%.
The British economy has been slowing in recent months as consumer spending and business investments have declined, along with a softening labour market.
Many economists are forecasting increased interest rates and an economic recession in the U.K. during 2024 as policymakers fight to get inflation back down to the Bank of England’s annualized 2% target.