The United Kingdom economy has officially entered a recession after figures from the last three months of last year showed that the economy shrank by more than expected.
The Office for National Statistics disclosed that Gross Domestic Product, GDP dropped by 0.3% between October and December, following a fall in GDP in all main sectors of the economy and collapse in retail sales in the build-up to the yuletide.
A drop of 0.1% in quarter three confirmed a second consecutive quarter of falling national output.
The official confirmation of a recession is a major blow to Prime Minister Rishi Sunak before a general election expected this year, with growing the economy one of his five flagship priorities for government.
The Office for National Statistics said growth over the course of 2023 as a whole was estimated at 0.1%, making it the weakest year since 2009 during the financial crisis, excluding the economic collapse in 2020 during the Covid-19 pandemic.
Shadow Chancellor Rachel Reeves said data showed that Prime minister Sunak’s pledge to grow the economy was “in tatters” after years of economic stagnation under the Conservatives.
