Reuters reports that Britain is the only economy among the G7 that has not rallied post-COVID and, while the International Monetary Fund predicted in January that it would be the only one of the seven to contract further through 2023, the economic data released since that January prediction has been “stronger than expected”.
The positive result is, Reuters reports, partly owing to energy bill support, falling energy prices and the jobs market, warning that banking ‘turmoil’ could undo the improvement if lenders flinch.
Business, meanwhile, did not regain confidence alongside the GDP growth.
“Business investment fell 0.2% in quarterly terms, a sharp downgrade from a first estimate of a 4.8% rise after changes to the way the ONS calculates seasonal adjustments,” Reuters reports. “Finance minister Jeremy Hunt this month announced new tax incentives to encourage companies to invest, although they were less generous than a previous scheme and came just as corporate tax is due to jump.”
