UK Economy Also in Recession... Q4 GDP Decreases by 0.3%

Britain's gross domestic product (GDP) in the fourth quarter of last year was recorded to have decreased by 0.3% compared to the previous quarter. With the economic growth rate showing negative figures for two consecutive quarters, analysts suggest that the British economy has entered a technical recession.

Rishi Sunak, Prime Minister of the United Kingdom. [Photo by Yonhap News]

On the 15th, the UK Office for National Statistics announced that the economic growth rate was -0.1% in the third quarter of last year and -0.3% in the fourth quarter. This figure is 0.2 percentage points lower than the market expectation of -0.1%.

The market considers the economy to be in a technical recession if the growth rate is negative for two consecutive quarters.

According to the statistics office, production in major sectors such as services (-0.2%), manufacturing (-1.0%), and construction (-1.3%) all declined. On the consumption side, both household spending (-0.1%) and government consumption (-0.3%) contracted.

However, despite two consecutive quarters of negative growth, the statistics office predicted that the overall GDP for last year likely increased by 0.1% compared to 2022.