UK economy

UK economy fell into recession at the end of 2023

The UK fell into recession during the final three months of 2023, official figures show, after the economy shrank by more than expected.

The Office for National Statistics said U.K. gross domestic product shrank by 0.3% in the final three months of the year, giving the second consecutive quarterly decline.

That follows a fall between July and September 2023. The UK is considered to be in recession if GDP falls for two successive three-month periods.

All three main sectors of the economy contracted in Q4, with declines of 0.2% in services, 1% in production and 1.3% in construction output, the ONS reported.

Technical recession

A technical recession is a term used to describe two consecutive quarters of decline in output. It is measured by the Gross Domestic Product (GDP), which is the overall output of goods and services in a country.

A ‘technical’ recession is usually caused by slowing growth or an isolated event rather than a major underlying cause.

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