The UK entered recession at the end of 2023

The UK slipped into recession in the second half of last year as high interest rates and inflation put pressure on household and business finances, making it difficult for the ruling Conservatives to face an election year. Britain’s gross domestic product (GDP) fell 0.3% in the fourth quarter of last year, compared with a 0.1% drop in the third quarter, according to figures released by the Office for National Statistics on Thursday.

Two consecutive quarters of economic contraction is generally considered by economists to be the definition of a so-called recession. “technique”. In the year 2023 as a whole, the United Kingdom, however, still shows a marginal growth of 0.1% annually, after growth of 4.3% in 2022, cites the ONS. This is the worst performance “Since the financial crisis of 2009, except for 2020”While the British economy was paralyzed for months due to the Kovid-19 pandemic.

Also read

“Half” inflation

“Inflation is the biggest drag on growth, so bifurcating it is our priority” Finance Minister Jeremy Hunt commented. Inflation in the United Kingdom is at 4%, still double the Bank of England’s target, but down significantly from the peak of 11% reached in October 2022.

“With high interest rates” – currently at 5.25% – so the Bank of England can bring inflation down,”Poor growth is not surprising», Jeremy Hunt continues. “But there are signs that the British economy has turned a corner and forecasters are expecting growth in the coming years,” It assures. “News that the UK has entered a technological recession in 2023 will be a blow to the Prime Minister” The orthodox sage Sunak “During a day when he risks losing two local elections”Ruth Gregory notes.