UK economy fell into recession in second half of 2023

As hard-pressed households reduced their spending in reaction to skyrocketing interest rates and growing living expenses, the UK economy entered a recession at the end of the previous year.

The recession in all major economic sectors and the collapse of retail sales in the run-up to Christmas caused the gross domestic product (GDP) to fall by a bigger than projected 0.3% in the three months leading up to December, according to the Office for National Statistics.

It came after a 0.1% decline in the third quarter, indicating that the country's output had decreased for the second straight quarter, which is what is technically known as a recession.

With an election less than a year away, official confirmation of a recession is a blow to the administration and will disgrace Rishi Sunak, the prime minister, who at the beginning of the year declared economic growth to be one of the government's five top priorities.

Rachel Reeves, the shadow chancellor, said: “Rishi Sunak’s promise to grow the economy is now in tatters. The prime minister can no longer credibly claim that his plan is working or that he has turned the corner on more than 14 years of economic decline under the Conservatives that has left Britain worse off.

“This is Rishi Sunak’s recession, and the news will be deeply worrying for families and business across Britain.”

Also read: US: 1 dead, 21 injured after shooting in Kansas City during Super Bowl victory rally