- ORIGINAL NEWS
UK economy slipped into technical recession at the end of 2023
- SUMMARY
Okay, so the UK economy has just hit a snag, according to the latest numbers.
Output shrank slightly in the last three months of 2023, making it two quarters of decline in a row—which is traditionally thought of as a technical recession.
All three areas of the economy took a hit, from services like retail and banking to production and construction.
The overall UK economy grew by just a tiny bit in 2023 compared to 2022, and on a per-capita basis—meaning after accounting for population growth—the economy actually got smaller.
Inflation is still higher than the Bank of England’s target, keeping interest rates high which slows down growth.
But even though it’s a downturn, some experts think it might be brief and the economy could start to recover in the coming months.
- NEWS SENTIMENT CHECK
- Overall sentiment:
negative
Positive
“But there are signs the British economy is turning a corner; forecasters agree that growth will strengthen over the next few years, wages are rising faster than prices, mortgage rates are down and unemployment remains low.”
“Over the coming months, we expect inflation to fall, potentially easing the pressure on U.K. households, and supporting the recovery of the consumer-driven economy.”
Negative
“The Office for National Statistics said U.K. gross domestic product shrank by 0.3% in the final three months of the year, notching the second consecutive quarterly decline.”
“All three main sectors of the economy contracted in the fourth quarter, with declines of 0.2% in services, 1% in production and 1.3% in construction output, the ONS said.”