International
UK Economy Slips Into Recession As GDP Drops By 0.3%
Eko Hot Blog reports that the United Kingdom‘s economy has officially slipped into a recession, with the Gross Domestic Product (GDP) declining by 0.3 percent in December 2023, signalling a downturn across all main sectors.
The UK’s Office for National Statistics (ONS) confirmed the contraction, marking a significant moment for the nation’s economic landscape.
This downturn has been described as the “mildest recession” the country has seen in the last 50 years, a characterization that, while indicating a recession, suggests a less severe economic decline compared to the steep drops of 1 percent and above that have occasionally been witnessed in the past.
UK Prime Minister, Rishi Sunak
The BBC reported on this characterization, highlighting the unique nature of the UK’s current economic challenge.
The recession’s onset, marked by a decline across various sectors, poses new challenges for policymakers and businesses as they navigate the complexities of a shrinking economy.
The figures will be a blow to Prime Minister Rishi Sunak. Growing the economy was one of five pledges he made in January 2023.
In 2020, the UK economy entered recession and contracted by a record 20.4 per cent in the second quarter with the country in lockdown over the coronavirus pandemic, official data had shown.
“It is clear that the UK is in the largest recession on record,” the Office for National Statistics said then.
Meanwhile, in December 2023, Britain’s economy unexpectedly shrank in the third quarter, official data showed, raising fears of a potential recession before an election due next year (2024).
UK Parliament
Gross domestic product contracted 0.1 per cent between July and September, down from a prior estimate of zero growth, the Office for National Statistics said in a statement.
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