Britain suffered a recession last year due to high inflation and a cost-of-living issue according to
official figures thus inflicting a blow to Prime Minister Rishi Sunak ahead of this year’s general
election.
Gross domestic product fell 0.3 percent in the fourth quarter of 2023, following a 0.1 percent
contraction in the previous three months, according to a statement issued by the Office for National
Statistics (ONS).
That puts the economy in a recession, which is defined as two consecutive quarters
of decreasing GDP.
The ONS reported that all major sectors declined in the fourth quarter, with manufacturing,
construction and wholesale being the biggest drags on growth, but the economy would remain
largely flat in 2023.
Prime Minister Sunak, whose Conservatives lag Keir Starmer’s main opposition Labour Party ahead of this year’s election, has stated that one of his top five goals will be economic growth. The news of the recession comes as voters head to the polls in two by-elections on Thursday, with the
Conservatives concerned about losing one-time strongholds in Wellingborough, central England, and
Kingswood, south-west.
Finance Minister Jeremy Hunt acknowledged that stubborn inflation and high interest rates were to
blame for the decline in GDP, but asserted that the economy was turning a corner.
“While interest rates are high so the Bank of England can bring inflation down low growth is not a surprise.” Said the Minister.
“But there are signs the British economy is turning a corner; forecasters agree that growth will
strengthen over the next few years, wages are rising faster than prices, mortgage rates are down
and unemployment remains low. Although times are still tough for many families, we must stick to
the plan cutting taxes on work and business to build a stronger economy,” added Jeremy Hunt.
