JEREMY Hunt braced the country for a “tough road ahead” despite the economy bouncing back.
GDP grew 0.5 per cent in October.
But the Chancellor painted a bleak picture, with figures showing the overall economy shrank 0.3 per cent in the last three months.
Experts say a recession is on the horizon.
Mr Hunt said: “High inflation, exacerbated by Putin’s illegal war, is slowing growth across the world, with the IMF predicting a third of the world economy will be in recession this year or next.
“While figures show some growth, there is a tough road ahead.”
It comes as experts predict the Bank of England will raise interest to 3.5 per cent this week, the highest rate for 14 years.
“While today’s figures show some growth, I want to be honest that there is a tough road ahead.
“Like the rest of Europe, we are not immune from the aftershocks of Covid-19, Putin’s war and high global gas prices.
“Our plan has restored economic stability and will help drive down inflation next year, but also lay the foundations for long-term growth through continued record investment in new infrastructure, science and innovation.”
The Treasury warning comes as the Bank of England looks set to raise interest rates this week with experts predicting a rise by half a point to 3.5 per cent, the highest for 14 years.
