UK Enters Recession after GDP Slumps 0.3% in 4Q23

The Office for National Statistics (ONS) of the United Kingdom reported that gross domestic product (GDP) in 4Q23 slid by 0.3%.

The decline posted the second consecutive decrease on a quarter basis, which was considered to be a technical recession for the country.

Economists polled by Reuters foresaw the 4Q23 GDP figures of the UK to be a negative 0.1%, while the reported numbers showed contraction in three main sectors of the country, which were a drop of 0.2% in services, 1% in production, and 1.3% in construction output.

The estimated GDP for the year 2023 of the UK was an increase of 0.1% YoY.

Meanwhile, inflation in the UK has slumped noticeably to 4%, but still higher than the country’s economic peers and the target of the Bank of England (BOE) of 2%.