Reuters: Data confirms UK economy entered recession in the previous year

Economic Woes Continue to Plague Britain as Recession Confirmed

On Thursday, official figures were released confirming that Britain’s economy had fallen into a recession in the latter half of 2023. According to the Office for National Statistics, gross domestic product (GDP) decreased by 0.1% in the third quarter and by 0.3% in the fourth quarter, matching preliminary estimates reported earlier. Despite some improvement at the beginning of 2024, with GDP growing by 0.2% in January and continued growth reported in February and March according to unofficial surveys, Britain’s economy has been slow to recover from the impact of the COVID-19 pandemic. Currently, its GDP is only 1% larger than it was in late 2019, making it one of the worst performers among G7 nations.

The Bank of England has indicated that British inflation is nearing a level where they can begin reducing interest rates. The Bank expects the economy to grow by just 0.25% this year, while official budget forecasters are more optimistic, expecting a 0.8% expansion in the economy. Following the release of this data, the value of sterling against both the U.S. dollar and euro remained relatively stable.

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