The UK's gross domestic product (GDP) shrank by 03%, a drop that exceeded economists' expectations. Following the previous three-month contraction of 0After 1%, this decline means that the UK is in recession.
While there is no official definition of a recession, two consecutive quarters of negative growth are widely considered to be technical.
It is the second major economy in the G7 to fall into recession, following Japan's surprise contraction at the end of 2023 due to weak domestic spending on Wednesday. At the same time, the eurozone, which is made up of 20 countries, narrowly avoided a recession over the same period.
Consumer spending, the main driver of the UK economy, fell by 1% in the second half of 2023, with retail spending continuing to be subdued amid a prolonged cost-of-living crisis.
The data showed that the UK services sector fell by 02 percent, manufacturing down 1 percent, and construction down 1 percent3%。
The Office for National Statistics said that the UK's economic growth momentum for the whole of 2023 was weak, with an increase of only 01%。
In order to curb inflation, the Bank of England has raised interest rates several times, and although the inflation level has dropped significantly, it is still above the inflation target. In addition, there is a serious lack of investment and public demand in the UK, and economic growth is sluggish.
The Chancellor of the Exchequer said high inflation remained "the biggest obstacle to growth" as it forced the Bank of England to keep interest rates steady and curb economic growth.
But there are signs that the UK economy is turning. The consensus is that economic growth will strengthen in the coming years, wages will outpace prices, mortgage rates will fall, and unemployment will remain low. He added.
*: China ** Daily.