The UK economy has officially entered into a recession, according to official data released on Thursday. The Office for National Statistics reported that the Gross Domestic Product (GDP) contracted by 0.3% in the fourth quarter of 2023, following a 0.1% contraction in the previous three months. This meets the technical definition of a recession, which is characterized by two successive quarters of negative economic growth.
The announcement is considered a setback for Prime Minister Rishi Sunak, who had made economic growth one of his five pledges in January 2023. The data highlights the challenges facing the UK economy, indicating a contraction in economic activity in the second half of the previous year.
Notably, the UK had experienced a recession in 2020 when the economy contracted by a record 20.4% in the second quarter due to the lockdown measures implemented in response to the COVID-19 pandemic.
Concerns about a potential recession had already surfaced in December 2023 when official data revealed an unexpected shrinkage of the economy in the third quarter. Gross domestic product contracted by 0.1% between July and September, raising fears of economic challenges leading up to the scheduled election in 2024.
The Office for National Statistics, acknowledging the gravity of the situation, had stated in 2020 that the UK was in the largest recession on record. The recent data reiterates the ongoing economic challenges and underscores the need for measures to stimulate economic recovery.
