AI to the rescue: UK economy grows 0.7pc despite Middle East turmoil

Detailed summary

Britain’s economy expanded in line with expectations in the third quarter, official data showed Thursday, as spending on the AI boom helped offset the ...

LONDON, Nov 12 — Britain’s economy expanded in line with expectations in the third quarter, official data showed Thursday, as spending on the AI boom helped offset the fallout from the US-Iran war.

Gross domestic product grew 0.7 per cent in the July-September period, up from a revised expansion of 0.5 per cent in the second quarter, the Office for National Statistics (ONS) said in a statement.

The growth was driven by the strength of the services sector, particularly computer programming, which has helped lift growth all year, according to the ONS.

“Many of the businesses reporting the largest increases in turnover are involved in activities related to artificial intelligence and cloud computing,” the ONS said.

The Bank of England last week lifted its UK economic growth forecast for this year and next, citing strength in business investment linked to AI-related demand.

The central bank delivered its forecasts as it raised its benchmark interest rate for the first time in more than three years as soaring energy costs push up global inflation.

“The Middle East conflict has hit growth worldwide, yet Britain is showing stand-out resilience,” Finance Minister John Healey said in response to Thursday’s figures.

Along with Ukraine’s strikes on Russian refineries, disruptions to Gulf energy supplies owing to the US-Iran war have caused record-high diesel prices around the world. — AFP

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