UK gross domestic product grew by 0.7% in the three months to September compared with the previous quarter, the Office for National Statistics said on Tuesday.
The final figure is unrevised from the previous estimate published in November and down from 0.9% growth in the second quarter.
However, the original year-on-year growth figure of 3% was revised down by 0.4 percentage points to 2.6%. That’s not great because it means Britain’s recovery has not been as strong as expected.
The downward revision “is particularly disappointing as Britain has already been experiencing the slowest recovery in decades,” The Guardian writes. It means that Britain’s economy “is only 2.9% larger than before the financial crisis, not 3.4% as previously thought.”
But there’s more bad news. The UK’s current account deficit — a measure of trade between the UK and the rest of the world in goods, services, and investments — increased to £27 billion in the third quarter of this year, up from £24.3 billion in the three months before. That means the current account gap represents 6% of the UK’s GDP.
The ONS said in statement: “The widening of the current account deficit was mainly due to a widening in the deficit on the primary income account from £8.2 billion in Quarter 2 2014 to £12.6 billion in Quarter 3 2014. This reflects receipts from foreign direct investment falling and payments to foreign direct investors rising. This was slightly offset by a narrowing in the deficit on the secondary income account.”