UK Economy Falls Into Recession

Afimag.com –

The United Kingdom (UK) economy has entered recession after seeing two consecutive quarters of negative economic growth in the second half of last year.

This is disclosed by UK official who made economic figures available to newsmen on February 15, 2024.

The Office for National Statistics (ONS) said in a statement on Thursday that Britain’s gross domestic product (GDP) shrank by 0.3 percent in the last three months of 2023, after contracting 0.1 percent in the third quarter.

The ONS noted that all main sectors shrink in the fourth quarter – with manufacturing, construction and wholesale being the biggest drags on growth – but states that the economy was broadly flat overall in 2023.

Sunak, whose governing Conservatives are trailing Keir Starmer’s main opposition Labour Party ahead of the election due this year, has pledged to grow the economy as one of his top five priorities.

News of the recession comes as voters go to the polls in two by-elections on Thursday, with the Conservatives fearful of losing one-time strongholds in Wellingborough, central England, and Kingswood in the southwest

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, but slow growth this year would still represent a difficult backdrop for Prime Minister Rishi Sunak’s attempts to woo voters ahead of a national election expected later in 2024.