The UK is at risk of recession after revised figures indicate the economy shrank between July and September 2023.
A recession is defined as when the economy shrinks for two three-month periods in a row.
Gross Domestic Product (GDP), which measures the health of the economy, contracted by 0.1% after previous estimates suggested growth has been flat. There was no growth between April and June 2023, after it was first calculated to have risen by 0.2%.
There have been concerns over the UK’s weak economic growth for a while now, but the UK has managed to avoid a recession so far. Whether or not there is a small recession, the bigger picture for analysts is that they expect real GDP growth to remain subdued throughout 2024. However, bear in mind that projections and forecasts do change, as already demonstrated.
Earlier this week, data showed that inflation, which measures the rate of price rises, slowed by more than expected to 3.9% in the year to November 2023, down from 4.6% in the previous month.
Forecasts do change…