February 15, 2024
1 min read

UK Slides into Recession Ahead of General Election, GDP Shrinks

A recession is commonly defined as two consecutive quarters of contraction…reports Asian Lite News

The UK has slipped into recession just months ahead of a general election, official figures showed on Thursday, derailing Prime Minister Rishi Sunak’s pledge to generate economic growth, the media reported.

The GDP fell 0.3 per cent in the final three months of 2023, following a 0.1 per cent contraction in the July to September period, the Office for National Statistics (ONS) said.

A recession is commonly defined as two consecutive quarters of contraction.

“All the main sectors fell on the quarter, with manufacturing, construction and wholesale being the biggest drags on growth, partially offset by increases in hotels and rentals of vehicles and machinery,” ONS director of economic statistics Liz McKeown said in a statement, CNN reported.

The ONS estimates that the UK’s GDP increased by a meagre 0.1 per cent in 2023. That’s the worst performance since 2009 when the economy was still reeling from the global financial crisis, if 2020, which was affected by the pandemic, is excluded.

Last year’s weak rise in output follows growth of 4.3 per cent in 2022.

“Across 2023 as a whole the economy has been broadly flat,” McKeown added.

The news will come as a disappointment to Sunak, whose ruling Conservative Party is contesting two local elections in England on Thursday.

It could also widen the already commanding lead the Opposition Labour Party enjoys in opinion polls ahead of the national election expected this year, CNN reported.

“Though the shallowness of this recession provides comfort, these figures also confirm that our economy remained locked in a cycle of persistent stagnation throughout 2023,” said Suren Thiru, economics director at the Institute of Chartered Accountants in England and Wales.

ALSO READ-Sunak paid over £500,000 in tax last year

Previous Story

Trump’s Criminal Trial Date Set Amid Allegations

Next Story

Opposition tears into BJP’s ‘corrupt’ electoral bonds

Latest from -Top News

US government shuts down, early deal unlikely

A bitter funding clash between President Trump and Democrats has triggered a government shutdown, paralysing services, fuelling partisan blame, and reviving fears of prolonged political dysfunction. The United States has entered a

PLA at 76: The Party’s Army, Not the People’s

At 76 years old, the PLA continues to exemplify how authoritarian regimes pervert military institutions, creating forces that serve narrow political interests rather than constitutional democracy, writes Major General RPS Bhadauria (Retd)

Why China’s National Day is no celebration for Asia

Whilst China’s leadership celebrates another year of Communist rule, Asia’s democracies are tallying the mounting costs of Beijing’s repressive policies at home and aggressive adventurism abroad, writes Colonel Danvir Singh (Retd) As

Trump’s 20 points to peace in Gaza

Trump unveils 20-point Gaza peace plan with Netanyahu’s backing, offering hostages’ release, technocratic rule, and global oversight, as Hamas faces pressure to accept or risk further war. US President Donald Trump has

Trump Urged to Back Baloch Rights in Pakistan

The letter urged President Trump to recognise the Baloch people’s right to self-governance and to raise his voice against the alleged atrocities committed by the Pakistani military…reports Asian Lite News In a
Go toTop

Don't Miss

IMF bailout discussion on debt restructuring still on lower pedestal

China has so far not agreed to debt restructuring which

Industry, student groups hail new UK visas for Indians

“International trade requires the removal of barriers and visa schemes