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Last week, the UK signed a deal to join the Comprehensive and Progressive Agreement for Trans-Pacific Partnership – or CPTPP, which is a trade pact with 11 Asia and Pacific nations, 3 years after its official exit from the EU. While joining the group will boost UK exports by cutting tariffs on goods such as cheese, chocolate and whisky, the government estimates that being in the bloc will only add 0.08% to the size of the UK’s economy.

Revised figures from the ONS suggest that the UK economy performed better than initially estimated at the end of last year. While previously released data suggested a contraction, the new data released last week suggest the economy grew 0.1% in the final quarter of 2022. While the figures confirm the UK economy showed some resilience and did not fall into recession at the end of 2022, consumers across the country continue to face the pressure of the current economic situation.

A central theme at the Ambrosetti Forum in Italy on Thursday and Friday was the potential for further instability in financial markets following the recent problems in the banking sector; particularly against a backdrop of tightening financial conditions. The collapse of SVB earlier in March, along with the emergency rescue of Credit Suisse prompted contagion fears. However, policymakers on both sides of the Atlantic pledged further support to the system if needed, causing markets to stage a recovery last week.