PRESS RELEASE : PwC comments on ONS December 2022 GDP figures [February 2023]

The press release issued by PWC on 10 February 2023.

Commenting on the December ONS figures released today, Barret Kupelian, senior economist at PwC, says:

“The big picture story from today’s GDP figures is that UK economic activity is stagnant. The UK has avoided a technical recession for now. But unlike the rest of the G7, UK economic output remains below pre-pandemic levels. And with most of the G7 continuing to grow, the gap between the UK and its competitors is widening.

“Looking forward, the economic outlook for most advanced economies has improved considerably, aided by a weaker US Dollar, a sustained decrease in the spot and future prices for natural gas and the reopening of the Chinese economy. All of these factors are expected to act as tailwinds to the UK economy in the near-term.
“In contrast, we expect the effects of tighter financial conditions to be increasingly felt across the real economy, both in the UK and the Eurozone, which will act as a headwind to growth.

“Looking ahead to the Spring Budget in March we can expect the government to focus on measures to reduce the UK’s high economic inactivity rate, which is acting as a drag on short and medium term growth.”