Publié le 15 mai 2023

Weak GDP highlights continued fragility of UK economy

Reacting to the latest ONS GDP figures, David Bharier, Head of Research at the BCC, said:

The first estimate of GDP for Q1 2023 of 0.1% growth indicates the UK is avoiding a recession and shows the resilience of businesses who are having to weather serious headwinds.

However, this also means we’re in a period of virtually no growth. The core issues affecting British businesses, such as unprecedented inflation, energy price shocks, and record tightness in the labour market, have not gone away.

A further rise in the interest rate will also impact firms that have resorted to using finance to manage cash flow.

The Government must now act fast and set out a plan for economic growth to mitigate the impacts of these shocks. Businesses need to see a reduction in the cost and burden of trading internationally, particularly with the EU, as well as support for those continuing to be hit by record energy costs.”

Source: British Chambers of Commerce