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

After two consecutive quarters of contraction, the UK economy entered a technical recession at the end of last year. he GDP fell by 0.3% in the October-December periodas reported on Thursday by the Office for National Statistics (ONS, in English).

this The decline in GDP in the last three months of the year added to the 0.1% decline between July and September.The agency noted when announcing the first two accounts.

The Office for National Statistics indicated that although there was a technical recession 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, reaching a rate of The services sector decreased by 0.2%, industrial production by 1%, and construction by 1.3%.

he was there Decreased net trade and spending by both government and householdsThe Office for National Statistics noted.

It is the first time that The UK has been entering a recession since it did so in the first half of 2020Due to the effects of the epidemic.

The data represents a blow to the party in a general election year Conservative Prime Minister Rishi SunakWhich promised to develop the economy as one of its five priorities.

After knowing the results Treasurer Jeremy Hunt said low growth was “not a surprise”. As long as the Bank of England keeps interest rates high to keep inflation down.

“the High inflation is the biggest obstacle to growth “So halving it was our top priority,” the so-called Treasury Secretary said.

“There is,” Hunt confirmed Signs that the British economy is at a turning point“, with expectations of enhanced growth in the coming years; wages rising faster than prices; lower mortgage rates and lower unemployment rates.

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“despite of Times are still difficult for many familiesHe added, “We must stick to the plan,” which includes “reducing taxes on jobs and companies to build a stronger economy.”

Opposition criticism

the Labor economics spokeswoman Rachel ReevesFor his part, Rishi Sunak said that Rishi Sunak's promise to develop the economy was now “in tatters.”

he The Prime Minister “is no longer able to say that his plan is successful” Reeves, who defended that his party alone “has a long-term plan for more jobs, more investment and lower bills,” declared Reeves.

Some analysts suggest it was a mild recession Combined decrease in the last half of 2023 by 0.4% Compared to the highest rates recorded at the beginning of previous recessions in the UK.

in In 2020, during the health crisis, the British economy contracted by 22.5%; 1% in 2012; 2% during the 2008 credit crisis; 1.6% in 1990; 3% in 1980, and 1.3% in 1973.

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