UK economy could avoid a recession – UOB

Pablo Piovano FXStreet

In light of the recent performance of GDP figures, the UK economy could have averted slopping into a technical recession, suggested Lee Sue Ann, Economist at UOB Group.

Key Quotes

“Indeed, the risk of the UK sliding into its first recession in a decade has receded following a stronger-than-expected GDP growth in July”.

“UK GDP rose by 0.3% m/m, beating expectations of just 0.1% m/m. Manufacturing and construction were also in positive territory - up by 0.3% m/m and 0.5% m/m respectively. Growth was flat over the three months to July, but this was an improvement on the 0.2% contraction seen in the April-to-June quarter”.

“July’s figures are the first in a crucial third quarter as UK politicians continue their squabble over Brexit, with the outcome still far from certain”.

“Following the contraction in the second quarter, the chances of a negative GDP print in the third quarter have now fallen significantly, meaning that a technical recession will likely be avoided”.

Author

Pablo Piovano

FXStreet

Born and bred in Argentina, Pablo has been carrying on with his passion for FX markets and trading since his first college years.

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