The UK economy fell into recession in the second half of 2023 ahead of the expected parliamentary elections this year. This is reported by Reuters.
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Falling economy
Official data released on Thursday means that Britain has joined Japan among the G7 advanced economies in recession, although it is likely to be short and shallow by historical standards.
Gross Britain's domestic product (GDP) fell by 0.3% in the last three months of 2023, after contracting by 0.1% in the period from July to September.
The economic fall in the fourth quarter was deeper than everyone had predicted economists in a Reuters poll, suggesting a contraction of 0.1%.
Read: Germany has become the third largest economy in the world
Currently Britain's economy is only 1% higher than it was at the end of 2019, before the onset of the COVID-19 pandemic, and only Germany has the worst performance among G7 countries.
Prime Minister Rishi Sunak has promised to boost the economy But according to opinion polls, opposition Labor is now more trusted on economic issues than the governing Conservative Party.
British households are set to see their living standards fall between national elections for the first time since the Second World War, analysts say.
- Country Economy