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<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="462" src="https://cms.cnbcafrica.com/wp-content/uploads/2023/03/107202762-1677839435526-gettyimages-1247623523-UK_LSEG-820x462.jpeg" alt="" class="wp-image-423618" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2023/03/107202762-1677839435526-gettyimages-1247623523-UK_LSEG-820x462.jpeg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2023/03/107202762-1677839435526-gettyimages-1247623523-UK_LSEG-300x169.jpeg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2023/03/107202762-1677839435526-gettyimages-1247623523-UK_LSEG-160x90.jpeg 160w, https://cms.cnbcafrica.com/wp-content/uploads/2023/03/107202762-1677839435526-gettyimages-1247623523-UK_LSEG-768x432.jpeg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2023/03/107202762-1677839435526-gettyimages-1247623523-UK_LSEG.jpeg 929w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">City workers in Paternoster Square, where the headquarters of the London Stock Exchange is based, in the City of London, UK, on Thursday, March 2, 2023. Bloomberg | Bloomberg | Getty Images</figcaption></figure>



LONDON — The U.K. economy grew by 0.3% in January, official figures showed on Friday, exceeding expectations as it continues to fend off what economists see as an inevitable recession.



Economists polled by Reuters had projected a 0.1% monthly increase in GDP. GDP was flat over the three months to the end of January, the Office for National Statistics said.



“The services sector grew by 0.5% in January 2023, after falling by 0.8% in December 2022, with the largest contributions to growth in January 2023 coming from education, transport and storage, human health activities, and arts, entertainment and recreation activities, all of which have rebounded after falls in December 2022,” the ONS found.



Production output fell by 0.3% in January after growing 0.3% in December, while the construction sector dropped 1.7% in January after flatlining the previous month.



The U.K. economy showed no growth in the final quarter of 2022 to narrowly avoid a recession — commonly defined as two quarters of negative growth — but shrunk by 0.5% in December.



The U.K. remains the only country in the G-7 (Group of Seven) major economies that has yet to fully recover its lost output during the Covid-19 pandemic. The ONS said Friday that monthly GDP is now estimated to be 0.2% below its pre-pandemic levels.



Both the Bank of England and the Office for Budget Responsibility have forecast a five-quarter recession beginning in the first quarter of 2023, but the data has so far exceeded expectations.



Despite the better-than-expected January print, economists still broadly believe activity is on a downward trajectory, as high inflation eats into household incomes and business activity.



U.K. inflation slowed to an annual 10.1% in January, continuing to shrink after hitting a 41-year high of 11.1% in October but staying well above the Bank of England’s 2% target.



Suren Thiru, economics director at the Institute of Chartered Accountants in England and Wales, said that the “modest” January rebound suggests the economy is still on a “downbeat path.”



“We’re likely to continue flirting with recession throughout much of 2023, as high inflation, tax rises and the lagged effect of rising interest rates shrinks consumer spending power, despite a boost from easing energy costs,” Thiru said.



Finance Minister Jeremy Hunt will deliver the government’s budget on Wednesday and is expected to announce further measures to manage the country’s cost of living crisis.



“The Spring Budget could have a significant impact on the U.K.’s near-term growth prospects. While extending energy support will provide some relief to struggling households, aggressive tax rises would risk eliminating any lingering momentum from the economy,” Thiru said.



Tom Hopkins, portfolio manager at BRI Wealth Management, noted that monthly figures are difficult to read at the moment, given distortions over the last six months — such as the funeral of Queen Elizabeth II and the World Cup — which partially affected consumer services.



“The underlying trend in the economy appears to be one of gradual contraction, thanks in part to an ongoing downtrend in retail spending,” he said. “We’re expecting a technical recession in the UK in the first half of this year, albeit one that’s not as bad as first feared.”



This is a breaking news story and will be updated shortly.

107202762-1677839435526-gettyimages-1247623523-UK_LSEG

UK economy rebounds with stronger-than-expected January GDP print

<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="720" height="405" src="https://cms.cnbcafrica.com/wp-content/uploads/2023/03/107206288-1678407487077-gettyimages-1435835173-25.jpeg" alt="" class="wp-image-423614" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2023/03/107206288-1678407487077-gettyimages-1435835173-25.jpeg 720w, https://cms.cnbcafrica.com/wp-content/uploads/2023/03/107206288-1678407487077-gettyimages-1435835173-25-300x169.jpeg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2023/03/107206288-1678407487077-gettyimages-1435835173-25-160x90.jpeg 160w" sizes="auto, (max-width: 720px) 100vw, 720px" /><figcaption class="wp-element-caption">Chinese President Xi Jinping is pictured here on Oct. 23, 2022, after consolidating his control of the ruling Communist Party of China. Kevin Frayer | Getty Images News | Getty Images</figcaption></figure>



BEIJING — Chinese leader Xi Jinping gained an unprecedented third term as president of the country on Friday.



Xi was widely expected to stay on as president in this month’s largely ceremonial parliamentary meeting, known as the “Two Sessions.” The annual gathering marks the meetings of an advisory group and a legislature, the National People’s Congress.



Delegates to the congress on Friday also formally reappointed Xi as chairman of the Central Military Commission.



Xi rose through China’s political ranks, becoming president in 2013 and abolishing term limits in 2018.



At the Chinese Communist Party’s 20th National Congress in October, Xi consolidated his control of the ruling party by filling the highest circle of leadership with loyalists.



Zhao Leji, a member of that core group who’s overseen party discipline, on Friday formally became the chairman of the National People’s Congress’ standing committee.



After twice-a-decade party congresses, top leaders of the Chinese Communist Party then go on to fill government positions such as president and premier.



Delegates are set to approve China’s new premier on Saturday.



Xi is scheduled to speak at the parliamentary meeting’s closing ceremony on Monday. The new premier is set to speak with the press later that day.



Han Zheng, previously executive vice premier, on Friday formally became vice president. Wang Qishan previously held the role.



Delegates on Friday approved a proposal to restructure the State Council, the Chinese government’s top executive body.



A draft of the plan was released earlier this week, and comes as the ruling Communist Party of China is expected to significantly increase its direct control of the government.

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Narrowing the difference in wages between men and women in the labor force can boost the world’s economy by about 7% — or $7 trillion, according to a Moody’s Analytics report.



At this rate, it may take 132 years for the world to close the economic gender gap, Moody’s said.



The economic boost will come as more women join the labor force and there’s an increase in productivity. A greater share of women holding more productive managerial and professional roles will also help, the report said.



“Closing the gender gap in labour force participation and the gender gap in management in OECD countries can raise global economic activity by approximately 7%, or about $7 trillion in today’s dollars,” directors Dawn Holland and Katrina Ell wrote in the report.



The report said narrowing the pay gap in emerging markets, such as India, would raise that potential even further.



The calculation is based on the pay increment that women in OECD countries, between ages 25 and 64, would see if their pay was equal to their male counterparts of the same age range in 2021.



“This alone would raise potential output in the OECD by nearly 10% and global output by 6.2%,” Moody’s Analytics wrote.



<h2 class="wp-block-heading" id="h-family-responsibilities"><a></a>‘Family responsibilities’</h2>



The report pointed to “family responsibilities carried by women” and a lack of similar network connections among root causes of the wage gap between men and women. It highlighted that women were “less likely” to ask for promotions while being held to higher standards than men.



“Shifting social norms is a lengthy and complex process, but politics such as enforcing flexible working conditions, providing affordable childcare, and providing paid paternity and paternity leave help to drive change in the right direction,” Moody’s wrote.



The World Bank in a recent report added that discrimination has kept the gender wage gap in place.



“Gender biases and inequalities that have placed women in low-wage occupations, such as differences in jobs and hours worked, as well as women’s disproportionate caregiving responsibilities, contribute to the gender wage gap,” the World Bank said.



“The persistence of this income disparity between men and women negatively affects the growth of a country’s economy,” it said, adding that 119 economies in the world have room to improve their legal frameworks to reduce the gender wage gap.



The World Bank noted almost half of the world’s economies do not mandate equal pay by law.



<h2 class="wp-block-heading" id="h-overqualified-women"><a></a>Overqualified women</h2>



The number of women in OECD countries holding a master’s degree or equivalent exceeds that of men, Moody’s said — but that still remains significantly underrepresented in middle and senior management roles.



This results in what they call a consistent “underskilling” of women, referring to the underuse of women’s skills and time.



As a result, this could lead to “economic loss at the individual and macroeconomic levels,” as economies see “limited and divergent” progress in elevating women over the past 10 years, Moody’s said.



“On average, women make a higher upfront investment in education but tend to land in lower-level and lower-paid positions, employed below their skill level, as measured by their educational accomplishments,” the authors said.

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