New figures have been released by the Office for National Statistics that show Britain’s economy went through a shallow recession last year. This presents a challenge for Prime Minister Rishi Sunak as he tries to reassure voters about the safety and stability of the economy before an election later this year. In the third quarter of 2023, GDP contracted by 0.1%, while it decreased by 0.3% in the fourth quarter.
While these figures may be disappointing for Sunak, there are indications that the economy started 2024 on a stronger footing, with GDP growing by 0.2% in January and continued growth in February and March. However, the country still has a long way to go in recovering from the impact of the COVID-19 pandemic. Overall, Britain’s economy only grew by 0.1% in 2023, marking its weakest performance since 2009 during the global financial crisis, excluding the major setback in GDP caused by the pandemic in 2020.
The Bank of England has hinted at cutting interest rates as inflation approaches a point that would allow such a move. However, despite these challenges, there are some positive signs, such as growth in households’ real disposable income and increased savings as the savings ratio rose slightly in the final quarter of last year. Following the release of these figures,
