Official figures have confirmed the UK economy went into recession at the end of last year, after the latest estimate found it had contracted in the last two quarters of 2023.
In a blow to the government’s economic standing, the Office for National Statistics (ONS) said the economy, measured by gross domestic product (GDP) shrank by 0.3% in the last three months of the year, unrevised from an earlier estimate.
It followed contraction of 0.1% in the third quarter of 2023, confirming a technical recession – two consecutive quarters of negative growth.
As he prepares for a general election, Rishi Sunak has been seeking to reassure Tory MPs that the economy is turning around, after business surveys showed a recovery in private sector activity in the first few months of the year.
Some previous recessions have been revised away or downgraded to be less severe than first believed. The “double-dip” recession initially recorded by the ONS in 2011 during the tenure of chancellor George Osborne was eventually found not to have happened.
More details soon …