Stagnation Continuation

The outlook for the British economy is better than expected. But that does not mean it is rosy

The outlook for Britain was bleak at the start of 2023. The country was on its fourth prime minister in four years, after the brief rule of Liz Truss ended in financial turmoil. Even that political instability was a minor worry for many Britons, given high energy prices, rising interest rates and falling wages. Yet in the end, the worst that could be said for Britain’s economy in 2023 was that it went sideways. Growth was minimal – GDP increased by around 0.5 per cent – but stagnation, not disaster, was the outcome.