ONS GDP economist reaction

Following the ONS GDP figures, published today, Tommaso Aquilante, Associate Director of Economic Research at Dun and Bradstreet said: “Growing by 4%, the UK economy has proven more resilient than expected in 2022. And yet there is clear evidence of weakening in economic activity, which has stagnated in the fourth quarter. The economy has avoided a recession by just a whisker, but it’s likely to be flirting with one in 2023, and consequently, there are challenges ahead for businesses.

“Credit risk has increased significantly, with business liquidations being consistently above pre-pandemic levels for a while. Businesses are going to have to be exceptionally diligent when managing their financial pipeline. To better serve customers and preserve cash flows and ensure businesses are resilient to the challenges ahead, a comprehensive monitoring of risks and opportunities along product lines and supply-chain ramifications is essential.”