The UK faces recession despite efforts to combat inflation

The United Kingdom entered an economic recession in the second half of 2023, new statistics have confirmed, indicating a difficult economic scenario for the country.

According to official data, the gross domestic product recorded a contraction of 0.3% in the last quarter of the year, from October to December, which comes after a decline of 0.1% in the previous quarter.

Although the GDP saw successive declines, there was a slight growth of 0.1% throughout 2023, showing a complex picture of the national economic situation.

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One of the five commitments made by Prime Minister Rishi Sunak last year was to “grow the economy”.

However, Finance Minister Jeremy Hunt told the BBC that when the commitment was made, Sunak was “very clear that tackling inflation must come first”.

Hunt admitted that today's data was “difficult” but insisted that tackling inflation was the priority.

“The turning point for the economy will come when inflation falls to its 2% target and the Bank of England feels it can cut interest rates,” Hunt said.

He added that although rates are at 5%, the highest in 15 years, growth will be weaker here, as in many countries.

Inflation fell from its peak of 11.1% in October 2022 to 4%, double the Bank of England's 2% target.

“The big picture is that since then the economy has become more resilient, unemployment has remained low, and real wages have been rising for six months,” Hunt said.

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The British minister said, “If we stand firm now, we can see the light at the end of the tunnel.”

However, Labor and the Liberal Democrats have strongly criticized this situation, describing it as a “Rishi Sunak recession”.

With information from Telam

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