The British economy entered into Technical recession at the end of 2023 By sequencing two consecutive quarters of contraction, with a GDP decreases by 0.3% October-December, the Office for National Statistics (ONS) reported on Thursday.
This decline in GDP in the last three months of the year added to the 0.1% decline between July and September, the agency noted, as it issued the first two calculations.
The National Statistics Office indicated that although A Artistic stagnation in that periodThe economy grew 0.1% compared to 2022.
And in the third quarter of 2023 there was – Contraction in major economic sectorsWith a decrease of 0.2% in services, 1% in industrial production, and 1.3% in construction.
The Office for National Statistics noted that there was a decline in the volume of net trade and spending by both government and households.
This is the first time the UK has entered a recession since it did so in 2018 The first half of 2020, due to the effects of the pandemic.
The data represents a Explosionin a general election year, for Conservative Prime Minister Rishi Sunak, who promised to grow the economy as one of his five priorities.
After hearing the results, Chancellor of the Exchequer Jeremy Hunt said that low growth “It's not a surprise“As long as the Bank of England keeps interest rates high to keep inflation down.
Labor economics spokeswoman Rachel Reeves said Rishi Sunak had kept his promise Grow the economy “It is now divided into parts.”
Reeves, who defended this, declared that the Prime Minister “can no longer say that his plan is successful.” Only his party “has a long-term plan More jobs, more investment and lower bills.
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