UK fell into recession at the end of 2023 as output shrank more than expected in the fourth quarter
ABC News
The British economy fell into recession at the end of 2023 as output shrank more than anticipated in the final three months of the year
LONDON -- The British economy fell into recession at the end of 2023 for the first time since the onset of the coronavirus pandemic, as output shrank more than anticipated in the final three months of the year, official figures showed Thursday.
In what is a blow for the governing Conservative Party ahead of a general election this year, the Office for National Statistics estimated that economic activity, as measured by gross domestic product, declined by 0.3% in the fourth quarter of the year from the previous three-month period. It said all three main sectors — services, industrial production and construction — were down.
That was far more than the 0.1% decline anticipated by economists.
The quarterly decline followed a 0.1% fall in the previous three-month period and highlights how the economy has been hobbled by high interest rates that have been raised to reduce inflation.
A recession is officially defined as two straight quarters of economic decline.
