Britain’s final third quarter GDP figures came out on Wednesday morning and it’s bad news.
The economy grew 0.4% quarter-on-quarter and 2.1% compared to the same period last year.
Both figures are downward revisions on the original estimates, which were 0.5% growth on the second quarter and a 2.3% rise on the third quarter last year.
It’s another piece of disappointing data for Chancellor George Osborne this week Public sector borrowing came in well above forecast at £14.2 billion for November. That’s means Osborne is almost certain to miss the country’s borrowing forecast for the year.
There is a silver lining though. The UK’s current account deficit for the UK — the amount of money flowing into the country versus how much is going out — was much stronger than forecast. The deficit came in at £17.4 billion for the third quarter, against an expected shortfall of £21.5 billion.
Despite the downward GDP revision and the likely missed borrowing target, Britain is in an economic sweet spot right now, with rock bottom levels of unemployment and growth looking on track.