UK economy grows by 0.2%, ONS figures show | Business News
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The UK economy grew slightly in the three months to June, according to official estimates.
Gross domestic product (GDP) increased by 0.2% in the second quarter of the year, the Office of National Statistics (ONS) said. In June alone it rose 0.5%.
It comes after a rate of 0.1% was recorded in the first quarter, the lowest amount possible to still be classed as growth.
The Bank of England has forecast that the UK will likely avoid recession in 2023 but suggested the economy will effectively flatline for the next few years.
It recently hiked interest rates for the 14th time in a row to 5.25% as it attempts to bring down inflation.
The rate of inflation fell by a bigger-than-expected drop in June but still remains high at 7.9%.
Chancellor Jeremy Hunt told Sky News last week that the UK, along with Europe, the US, Canada and Japan, were “all in a low growth trap that we need to get out of”.
Read more: Cost of living – latest: GDP figures released
He added: “What you’ll see from me in the autumn statement is a plan that shows how we break out of that low growth trap and make ourselves into one of the most entrepreneurial economies in the world.”
ONS publishes GDP data every month, which aims to measure the sum total of everything produced in the economy.
However the indicator has faced criticism for failing to include some parts of the economy, such as the contribution of unpaid carers.
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