UK economy stagnates as increased interest rates take their toll

The UK economy did not grow between July and September, according to recent figures. This lack of growth is attributed to a series of interest rate increases. The chancellor acknowledged the negative impact of higher rates on growth, but also stated that the economy had performed better than expected overall this year. Economic forecasters predict that the economy will remain stagnant for several more months. The Bank of England recently released a statement suggesting that the UK will experience zero growth until 2025. However, it is unlikely to enter a recession. The Bank has been raising interest rates in an attempt to control inflation, but this has also affected borrowing costs for consumers and businesses, thus impacting economic growth. The current interest rate is at its highest level in 15 years. The Office for National Statistics (ONS) reported that all sectors of the economy showed subdued growth during the three-month period. The services sector experienced a slight decline, while manufacturing and construction saw minimal growth. The chancellor emphasized that interest rates were the main reason for the slowdown in growth. He also expressed surprise at the strength of the economy, which had been expected to contract, and stated that this provided a solid foundation for the future. The Bank of England is not expected to cut interest rates until late next year. The latest figures were criticized by opposition parties, with Labour's shadow chancellor stating that they were evidence of an underperforming economy. The Liberal Democrat Treasury spokesperson accused the Conservative government of damaging the economy. The risk of a formal technical recession has decreased as a result of the rate increases, though there was a small contraction in the economy between July and September. The growth forecast for the final quarter of the year is between 0% and 0.1%. The Bank of England may view this as a successful achievement given last year's high inflation. The government hopes that inflation will decrease significantly in October, while economic growth is now in question. These factors could impact the Autumn Statement and the upcoming general election. Business owners and consumers are feeling the effects of higher interest rates, with decreased consumer confidence and spending. Gross Domestic Product (GDP) is used to measure the health of the UK economy. It remained at zero for the July-to-September period, following a 0.2% expansion in the previous quarter. However, September saw a 0.2% growth compared to the previous month, exceeding expectations. The Office for National Statistics reported signs of improvement, such as a higher percentage of businesses not considering raising prices. The article concludes with advice for job seekers, including expanding their search radius, using appropriate keywords, being proactive in contacting businesses, promoting their skills on social media, and seeking opportunities for learning and personal growth.