The UK narrowly avoided falling into recession in 2022, new figures show, after the economy saw zero growth between October and December.
This is despite a sharp 0.5% fall in economic output during December, partly due to strike action, the Office for National Statistics (ONS) said.
Chancellor Jeremy Hunt said the figures showed "underlying resilience" but said "we are not out of the woods".
The Bank of England still expects the UK to enter recession this year.
But it will be shorter and less severe than previously thought.
Mr Hunt said that high inflation remains a problem and continues to cause "pain for families up and down the country".
Inflation - or the rate at which prices are rising - is slowing but at 10.5% remains close to a 40-year high.
The Bank of England has been putting up interest rates in a bid to tackle the soaring cost of living.
https://www.bbc.co.uk/news/business-64584295