The UK is entering a technical recession

UK GDP (gross domestic product) fell by 0.3% in the fourth quarter compared to the previous quarter. With the second negative quarterly result in a row, the region entered a technical recession. here complete From the report (PDF – 671 KB).

Economic activity in the UK contracted by 0.1% in the third quarter compared to the previous quarter. This was the first time since 2020, the first year of the Covid-19 pandemic, that the country recorded two consecutive negative quarterly results.

In the first quarter of 2020, the UK saw a 2.7% decline in GDP, followed by a 20.3% decline in the second quarter. In the third quarter, there was a growth of 16.8%.

According to the Office for National Statistics (ONS), in the last quarter of 2023, there were declines in all three of the country's main sectors: services fell by 0.2%, production fell by 1.0%, and construction fell by 1.3%.

In terms of spending, there was a decline in the volume of net trade, household spending and government consumption during the same period.

Following the data released on Thursday (November 15), British Finance Minister Jeremy Hunt announced, He said Projections indicate stronger growth in the coming years.

There are signs that the British economy is changing direction. Forecasters agree that growth will strengthen in the coming years, wages will rise faster than prices, mortgage rates will fall, and unemployment will remain low. Hunt said.

Although the economy contracted for the last two consecutive quarters in 2023, GDP is expected to rise by 0.1% compared to 2022 when growth reached 4.3%. This is the smallest annual variation in real GDP since the 2009 financial crisis, excluding 2020, which was affected by the pandemic.