The UK has entered a recession for the first time since the pandemic

UK economy Contracting in the fourth quarter of 2023 The Office for National Statistics said on Thursday that the country had entered a recession for the second time in a row.

British GDP fell by 0.3% in the fourth quarter of last year, after falling by 0.1% in the third quarter, according to a statement from the Office for National Statistics.

the High interest rates and inflation They have put pressure on the economy of households and businesses, which, in the middle of an election year, has complicated the Conservatives' mission in power.

Economists often consider two consecutive quarters of economic contraction to be the definition of economic contraction “Technical” recession.

Rachel Reeves, Shadow Chancellor of the Exchequer (Opposition), during a press conference. Image: Bloomberg

But in 2023 as a whole, the UK It still shows a slight growth of 0.1% year-on-yearAfter growth of 4.3% in 2022, as determined by the Office for National Statistics.

It was mainly caused by the recession Bad results for companies in December, in the middle of the Christmas season It is traditionally a peak time of year for this sector, according to the Office for National Statistics.

Thus the British economy enters a recession For the first time since 2020in light of the closures to combat the coronavirus pandemic It affected economic activity For months.

The Office for National Statistics indicates that the British economy “is recording its worst performance since the 2009 crisis, with the exception of 2020.”

Inflation problem

Inflation in the United Kingdom stands at 4%Still Double the Bank of England's target, But it decreased compared to 11% accessed October 2022.

“With interest rates rising – currently 5.25% – the Bank of England is working to reduce inflation, Weak growth is not a surpriseHunt continued.

“But there are signs that the British economy has turned a corner Expectations speak of growth in the coming years“The minister said.

Economists It is scale relative from this stagnation.

“It's moderate”

“It is moderate and leading indicators indicate that it is already coming to an end,” economist Ruth Gregory of Capital Economics said in a statement.

But Gregory explained that “announcing that the United Kingdom will enter a technical recession in 2023 would be a blow to Conservative Prime Minister Rishi Sunak.”

the Labor currently has a clear advantage Opinion polls indicate that the Conservatives have been in power for about 14 years, before this year’s elections They still don't have an appointment.With information from the Associated Press

With information from the Associated Press

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