![](https://i.imgur.com/CLvY2jA.png")
16-03-2023, 08:31 AM
Did football save the British economy?
#Econgram_UK
Facts:
1) Outperforming expectations, the U.K. economic output rose 0.3% in January relative to December. However, the GDP is still 0.2% lower than it was pre-pandemic.
2) Since December, the output of the sport, amusement, and recreation sectors has increased by 8.9%.
3) The forecasted 2023 GDP contraction of 1.4% might be too pessimistic.
Analysis:
1) Since December, the U.K. has undergone a faster-than-expected expansion. The country’s economy has rebounded after the period of the slowest economic recovery from the pandemic among Western countries.
2) However, the exceptional output growth last January might be temporary. In fact, after the World Cup finished, the Premier League returned to the full game schedule. That boosted revenues in many economic sectors.
3) Still, the forecasted 2023 recession* might be avoided. Given a reduction in energy costs due to the price cap, the budget watchdog* is expected to modify its forecast for the 2023 output growth. However, the return to positive GDP growth might lead to an increase in inflation*, which remains high. Consequently, the Bank of England might have to raise interest rates again.
#Econgram_UK
Facts:
1) Outperforming expectations, the U.K. economic output rose 0.3% in January relative to December. However, the GDP is still 0.2% lower than it was pre-pandemic.
2) Since December, the output of the sport, amusement, and recreation sectors has increased by 8.9%.
3) The forecasted 2023 GDP contraction of 1.4% might be too pessimistic.
Analysis:
1) Since December, the U.K. has undergone a faster-than-expected expansion. The country’s economy has rebounded after the period of the slowest economic recovery from the pandemic among Western countries.
2) However, the exceptional output growth last January might be temporary. In fact, after the World Cup finished, the Premier League returned to the full game schedule. That boosted revenues in many economic sectors.
3) Still, the forecasted 2023 recession* might be avoided. Given a reduction in energy costs due to the price cap, the budget watchdog* is expected to modify its forecast for the 2023 output growth. However, the return to positive GDP growth might lead to an increase in inflation*, which remains high. Consequently, the Bank of England might have to raise interest rates again.
