June 15, 2024

UK economy enters recession in second half of 2023, with slow recovery from COVID-19 pandemic

1 min read
Reuters reports: Data confirms UK economy entered recession in the past year

On Thursday, official figures were released indicating that Britain’s economy had entered a recession in the second half of last year. The Office for National Statistics reported that Gross Domestic Product (GDP) had contracted by 0.1% in the third quarter and by 0.3% in the fourth quarter, remaining unchanged from the initial estimates.

Despite showing some signs of improvement at the start of 2024, with GDP growing by 0.2% in January and unofficial surveys indicating continued growth in February and March, Britain has been slow to recover from the impacts of the COVID-19 pandemic. As a result, the economy is currently only 1% larger than it was in late 2019, with only Germany within the Group of Seven nations experiencing a worse economic performance.

The Bank of England has stated that British inflation is approaching a level where interest rate cuts can be implemented. The central bank predicts that the economy will only grow by 0.25% this year, while official budget forecasters anticipate a 0.8% expansion in the economy.

Following the release of these data, the value of the British pound remained relatively stable against both the U.S. dollar and the euro.

Leave a Reply

Copyright © All rights reserved. | Newsphere by AF themes.