Stagnant UK Economy Raises Concerns for Starmer's Government

The UK's economic output stagnated in Q3, challenging Prime Minister Keir Starmer's administration. Previously estimated growth of 0.1% was revised to 0.0% by the ONS. The Bank of England predicts zero growth in Q4, maintaining borrowing costs due to inflation risks. The current account deficit narrowed from £24bn to £18.1bn.

The UK's economic output showed no growth in the third quarter, adding pressure on Prime Minister Keir Starmer's government. Official figures from the Office for National Statistics revised the previously estimated growth of 0.1% to 0.0%, highlighting the economic challenges faced by the administration.

The revised figures further indicated a reduction in the growth rate from the second quarter, adjusted from 0.5% to 0.4%. Starmer, who assumed office with Finance Minister Rachel Reeves in July, had forewarned of economic difficulties and introduced employer tax hikes in the October budget.

The Bank of England's forecast suggests continued stagnation in the fourth quarter, opting to maintain stable borrowing costs amidst persistent inflationary concerns. Meanwhile, the current account deficit improved more than expected, shrinking to £18.1 billion from £24 billion.

(With inputs from agencies.)