UK Economy Falls Into Recession

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The UK economy has entered recession after recording two successive quarters of negative economic growth in the second half of last year.

Official data showed on Thursday that Gross domestic product – a key measure of economic activity – dropped by 0.3%.

It follows a fall between July and September. The UK is considered to be in recession if GDP falls for two successive three-month periods.

BBC reports that this raises questions over whether Rishi Sunak has met his pledge to grow the economy.

While previous recessions were long lasting – such as during the global financial crash of 2008 and 2009 – this one is likely to be mild and short-lived.

For the whole of 2023, the economy reportedly grew by 0.1%.

Nevertheless, excluding the Covid years, that annual growth figure is the weakest since 2009 when the UK and major economies were reeling from the global financial crisis.

Shadow chancellor Rachel Reeves said the data showed that Mr Sunak’s pledge to grow the economy was “in tatters”.