UK economy recovery slows before Omicron

Britain’s economic recovery from pandemic fallout slowed more sharply than previously thought in the third quarter even before the arrival of the Omicron variant, official data showed Wednesday. Gross domestic product grew 1.1 per cent in the July-September period as the economy reopened, the Office for National Statistics (ONS) said in a statement.

That compared with the prior estimate of 1.3 per cent, and followed a downwardly-revised 5.4 per cent growth in the second quarter as global supply disruptions hurt businesses.

Economists predict the slowdown will extend into the fourth quarter due to recent curbs aimed at tackling the spread of the Omicron coronavirus strain that emerged in November, while surging inflation and a Bank of England interest rate hike is also set to weigh.

– London