GDP

BreakingEconomy shrinks by 0.3%

Andy Verity

BBC Economics correspondent

The economy shrank by 0.3% in November, according to the monthly estimate by the Office for National Statistics.

That's worse than most economists expected.

The more reliable three-month figures, however, showed the economy grew by 0.1% between the start of September and the end of November - better than the 0.1% fall expected.

GDP figure 'quite poor'

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According to Prof Costas Milas of the University of Liverpool's management school, the latest productivity figures are "quite poor".

"The government will claim that the poor performance is down to the ‘fractured’ Parliament which, by opposing the 'Get Brexit done' message of Boris Johnson, created additional uncertainty at the expense of the UK economy [and] opposition parties will claim that the current poor performance is down to the government’s stubbornness in keeping ‘no-deal Brexit’ on the table," he said.

"Whether Boris Johnson or opposition leaders are correct is irrelevant. The main point is that our economy continues to disappoint badly which will probably bring a Bank of England interest rate cut much closer especially if Thursday's election turns out very inconclusive."

'Economic growth is petering out'

Garry Young, director of macroeconomic modelling and forecasting at the National Institute of Economic and Social Research has responded to this morning's GDP figures. He said:

Economic growth in the United Kingdom is petering out at the end of the year. GDP was flat in the three months to October, and the latest surveys point to further stagnation in November and December. The economy is being held back by weak productivity growth and low investment due to chronic levels of uncertainty. While some uncertainty could be resolved by the outcome of the general election, it is doubtful that this will provide business with the certainty needed to invest with confidence.

PwC predicts 1% GDP growth in 2020

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"Growth seems likely to remain subdued through the rest of 2019 but we would hope for a gradual revival in activity over the course of 2020 if current political and economic uncertainties ease," said John Hawksworth, chief economist at PwC, in response to today's GDP data.

"Our main scenario is for 1% GDP growth in 2020 assuming an orderly Brexit," he added.

UK economic growth slowest in nearly seven years

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The UK economy grew at its slowest annual pace in nearly seven years in October, according to official figures.

Gross domestic product rose by 0.7% against October 2018, the weakest growth since March 2012, with services the main driver the Office for National Statistics said.

In the three months to October, growth was flat against the previous quarter.

The figures come ahead of Thursday's general election, with the main parties all promising to boost growth.

Japan's economy grows 0.4% in July-Sept period

A woman holding shopping bags walks through the Ginza shopping district on the first day of the Golden Week holiday on April 27, 2019 in Tokyo, Japan.
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Japan's economy grew 0.4% quarter-on-quarter in the July-September period, according to data from the Cabinet Office.

It expanded an annualised 1.8%, the data showed.

Australia GDP grows 0.4%

Australia's economy grew 0.4% in the three months to September, according to data from the Australian Bureau of Statistics (ABS), below forecasts of a 0.5% expansion.

“The economy has continued to grow, however the rate of growth remains well below the long run average,” says Bruce Hockman, ABS chief economist.

GDP grew 1.7% year on year in the September quarter.