Tue. Jun 25th, 2024
Government data shows UK economy in shallow recession in 2023: Business News

Britain’s economy has been in a shallow recession for the past year, according to official figures. The Gross Domestic Product (GDP) contracted by 0.1% in the third quarter and 0.3% in the fourth quarter of last year, remaining on track with initial estimates. This news presents a challenge for Prime Minister Rishi Sunak, who is facing criticism from the opposition Labour Party for overseeing what they call “Rishi’s recession.” However, there are some positive signs for the economy at the outset of 2024, with GDP expanding by 0.2% in January from December and recent surveys indicating continued growth in February and March.

Despite these positive trends, Britain has been slow to recover from the impacts of the COVID-19 pandemic, with the economy only 1% larger than it was in late 2019. In 2023, the economy grew by just 0.1%, marking its weakest performance since 2009 following the global financial crisis. The Bank of England has suggested that British inflation is nearing a point where they can start cutting interest rates. They expect the economy to grow by 0.25% this year, whereas official budget forecasters anticipate a 0.8% expansion.

The latest figures show an increase in households’ real disposable income by 0.7% compared to the previous quarter, as well as a slight rise in the savings ratio to 10.2% in the final quarter of last year. These indicators suggest that consumers are taking a cautious approach due to economic uncertainty.

Overall, while there are some positive signs for Britain’s economy at present, it remains clear that there is still much work to be done in order to fully recover from the impacts of COVID-19 and reassure voters about

By Aiden Nguyen

As a content writer at newscholarly.com, I delve into the realms of storytelling with the power of words. With a knack for research and a passion for crafting compelling narratives, I strive to bring forth engaging and informative articles for our readers. From decoding complex concepts to unraveling current events, I aim to captivate and educate through the art of writing. Join me on this journey as we explore the ever-evolving landscape of news and knowledge together.

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