The Recession Bite is Real in Britain
The United Kingdom has officially entered a recession according to new data, making the economic downturn official. The numbers show the recession gripping Britain is shaping up to be one of the toughest in years.
The Office for National Statistics reported that the British economy actually shrank 0.3% in the final months of 2023. This comes after a small 0.1% drop in the quarter before. Two straight quarters of falling GDP is the classic definition of a recession.
The new figures reveal Britain’s economic output was basically flat over the whole of 2023. The measly 0.1% increase is the weakest yearly growth since 2009. That really puts into perspective how rough the recession is with growth slowing dramatically from the bumper 4.3% expansion in 2022.
So In Plain English, What’s Really Happening?
The recession has arrived in Britain and it looks like it might be a doozy. All signs point to the economy basically treading water last year after the big gains of 2022. Manufacturing, construction, and wholesale all dragged majorly on growth. Some parts like hotels and machinery rentals did better, but not enough to offset the declines elsewhere.
When you combine the back-to-back quarters of falling output with the anemic growth for all of 2023, it’s clear Britain has slid into a recession. The big question now is how long it will last. The hope is interest rates coming down later this year along with cooling inflation might provide a boost. But for now, the recession is here and it doesn’t seem like a very fun time for the British economy.
