UK's economic growth stumbles in Q3 amid high inflation

The UK economy grew a meager 0.1 percent in the third quarter of this year (Q3), lower than both the previous quarter and market expectations, according to the Office for National Statistics (ONS).

This subdued performance presents a formidable challenge for the newly elected Labour government as it endeavors to stimulate economic growth in the face of soaring inflation and interest rates.

In July this year, the Labour Party won a landslide victory in the House of Commons election, returning to power after 14 years. Before the election, the Labour Party had promised a 2.5 percent growth target for the UK economy in 2024, aiming to become the fastest-growing economy among the G7 nations.

However, the UK's economic performance in the third quarter ranks far behind the U.S., Japan, France, and Canada among the G7. Economists generally believe that the UK economy continues to be suppressed by the dual pressures of high inflation and a high-interest-rate environment.

Weak consumer spending and low business confidence have become the main reasons for the slowdown in economic growth. How to boost the economy and public confidence will be a test of the Labour government's ability to govern.

UK Chancellor of the Exchequer Rachel Reeves recently proposed the Autumn Budget, which plans to push for the largest pension reform in decades to promote economic growth. The UK government aims to consolidate the current 86 local government pension schemes into a few "super funds," hoping to release around 80 billion pounds to invest in the UK's energy infrastructure, tech startups, and public services.

This plan, though ambitious, is still a subject of much debate.

"There's 80 billion pounds being taken from the local authorities pension funds to invest in British infrastructure. I think there are great risks involved in a centralized pension fund being put into the hands of private equity funds. It's very high risk, very high reward. The debt in fold could be significant," said Robert, a London resident.

Britain's annual Consumer Prices Index (CPI) rose to 2.3 percent in October, up from 1.7 percent in September, according to data from the ONS released on Wednesday.

This marks the highest month-to-month rise in annual CPI since October 2022, pushing inflation to a six-month high.

The Bank of England has projected that inflation could rise further to 2.5 percent by the end of the year and peak at 2.7 percent by the close of 2025. It expects inflation to gradually decline below the 2 percent target within its three-year forecast horizon.

UK's economic growth stumbles in Q3 amid high inflation

UK's economic growth stumbles in Q3 amid high inflation

UK's economic growth stumbles in Q3 amid high inflation

The upcoming visit by mainland universities to Taiwan will promote exchanges between young people on both sides of the Taiwan Strait, said Hsiao Hsu-tsen, executive director of the Taiwan-based Ma Ying-jeou Culture and Education Foundation, the organizer of the event.

The foundation announced on Nov 4 that it plans to invite 40 faculty members and students from seven mainland universities to visit the island, following a successful visit by mainland college students in 2023.

"I believe the upcoming exchange holds great promise. After all, the future of both sides of the Taiwan Strait lies in the young people, especially high school and college students, who serve as the seedlings and the foundation. We hope that the young people on both sides will have more interactions. It is our responsibility to lay a solid foundation for our next generation, whether in Taiwan or on the mainland, so that they can have a brighter future. Our actions and words show that we don't want war, we want peace; we don't want 'Taiwan independence', we want the two sides to continue to communicate. This is the real voice of Taiwan," said Hsiao.

The visit is scheduled to start on Nov 27 and will last nine days and eight nights.

The mainland students and teachers are from Peking University, Tsinghua University, Fudan University, Sun Yat-sen University, Zhejiang University, Fujian Normal University and Beijing Sport University. The students will include Olympic champions, table tennis gold medalist Ma Long from Beijing Sport University, and shooting gold medalist Yang Qian from Tsinghua University.

They will visit six universities in Taiwan, including Taiwan University, Tsing Hua University in Hsinchu, Chengchi University, Yang Ming Chiao Tung University, Chinese Culture University in Taiwan, and Chang Gung University, as well as the Taipei Municipal Zhongshan Girls High School.

The itinerary will also include visits to scenic spots such as Sun Moon Lake so that mainland students will have an in-depth understanding of Taiwan's history and natural beauty. Additionally, the foundation will arrange baseball experience activities, allowing mainland students to engage firsthand with Taiwan's popular baseball culture.

This is the second such visit planned by the foundation. In 2023, faculty members and students from five mainland universities were warmly received across Taiwan, positively impacting cross-Strait relations.

In 2023 and 2024, Ma Ying-jeou, former chairman of the Chinese Kuomintang, also led youth groups from Taiwan on visits to the mainland.

Mainland universities' visit to promote exchanges between youth on both sides of Taiwan Strait: organizer