The UK entered recession at the end of 2023, with GDP falling by 0.3%

the UK economy The country entered a technical recession at the end of 2023 through two consecutive quarters of contraction, with GDP declining by 0.3% in the period from October to December. National Statistical Office (ONS, in English).

This decrease in GDP (gross domestic product) in the last three months of the year in addition to a 0.1% decline between July and September, the agency noted, as it issued the first two calculations.

The Office for National Statistics indicated that although a technical recession was recorded in that period, the economy grew by 0.1% compared to 2022.

In the third quarter of 2023, contractions occurred in the main economic sectors, as the services sector decreased by 0.2%, and 1% in the services sector. Industrial production And 1.3% for construction.

There was a decline in the volume of net trade and spending by both the government and households ONS.

This is the first time the UK has entered a recession since it did so in the first half of 2020, due to the effects of the pandemic.

These data represent a blow, in a general election year, to 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 lower growth was “not surprising” as long as the Bank of England keeps interest rates high to keep inflation down.

Labor economics spokeswoman Rachel Reeves said Rishi Sunak's promise to grow the economy was now in tatters.

Reeves declared that the Prime Minister “can no longer say that his plan is working”, and defended that his party alone “has a long-term plan for more jobs, more investment and lower bills.” .

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