Economy: British economy slips past recession

Just barely escapes the UK economy of a recession: In the third quarter, the gross domestic product (GDP) grew by 0.3 percent, the British statistics agency said. In the second quarter, GDP had fallen by 0.2 percent. A technical recession is thus prevented: this occurs when the economy shrinks in two consecutive quarters.

Growth is primarily attributable to the services sector, which contributes 80 percent to economic output. In addition, the consumer climate improved: Consumers spent more money. Public investment also rose. By contrast, the manufacturing industry and corporate spending stagnated, the statistics office said. If one looks at September in isolation, however, GDP will contract by 0.1 percent compared to the same period of the previous year.

The upcoming Brexit paralyzes the British economy for several years. By the end of October, Britain was supposed to have left the EU, causing significant uncertainty among British companies and consumers. Because the UK Parliament rejected the exit agreement, the Brexit was postponed for the third time. There are now new elections on December 12, and Brexit is scheduled for January 31, 2020.