The UK economy has entered recession after recording two successive quarters of negative economic growth in the second half of last year.
The office for National Statistics (ONS) said that gross domestic product (GDP) contracted by a worse-than-expected 0.3% in the three months to December having shrunk by 0.1% between July and September.
A Reuters poll of economists had pointed to a smaller 0.1% fall in the October-to-December period.
The fall in GDP in the fourth quarter was the biggest since the first quarter of 2021, the ONS said.
Britain’s economy has been stagnating for nearly two years. The Bank of England has said it expects it to pick up slightly in 2024.
“Businesses were already under no illusion about the difficulties they face, and this news will no doubt ring alarm bells for government,” Alex Veitch, director of policy and insight at the British Chambers of Commerce, said.
“The chancellor must use his budget in just under three weeks’ time to set out a clear pathway for firms and the economy to grow.”
Finance minister Jeremy Hunt said there were “signs the British economy is turning a corner” and “we must stick to the plan – cutting taxes on work and business to build a stronger economy.”
Media reports said Hunt was seeking to cut billions of pounds from public spending plans to fund pre-election tax cuts in his March 6 budget, if penned in by tight finances.
Economic output fell by 0.1% in monthly terms in December after 0.2% growth in November, the ONS said. The Reuters poll had pointed to a 0.2% fall in December.
Sterling weakened moderately against the dollar and the euro shortly after the GDP data release.
The ONS said the manufacturing, construction and wholesale sectors were the largest contributors to the decrease in GDP.
Related posts:
We don’t have enough weapons for that – Ukraine’s Zelensky rejects Russia’s allegations of an attempted assassination on Putin 
13-year-old boy commits suicide after being accused of stealing phone 
Drama as DSS and Prisons Services officials engage in a scuffle over Emefiele’s custody 
FUTA student arraigned for posting nude video of his ex-girlfriend online 
EFCC releases Umar- Farouk after grilling but requires her to return for another round of interrogation 
Lagos Commissioner of Police orders removal of DPO for detaining lawyer seeking bail for his client 
Madam shares video of housemaid dancing in her room and it sparks debate on how appropriate it is to put hidden camera in domestic staff’s rooms 
Supreme Court affirms Sanwo-Olu’s election as Lagos state governor
Leave a Reply