Britain’s economy slipped into a recession during the latter half of 2023, contracting by a more significant-than-anticipated 0.3 per cent in the three months leading up to December.
The 0.3 per cent contraction in Britain’s economy from October to December came after a 0.1 per cent decline between July and September. This trend went against the expectations of economists surveyed by Reuters, who had anticipated a smaller 0.1 per cent GDP decline for the October-to-December period.
Despite this, the Bank of England remains optimistic about 2024, foreseeing a rebound in growth. However, any slow performance could impact Prime Minister Rishi Sunak’s efforts to gain voter support before an expected national election later in the year.
The Office for National Statistics reported a 0.1 per cent decline in economic output for December, contrary to analysts’ expectations of a 0.2 per cent decrease.
Following the release of the GDP data, the British pound experienced a moderate weakening against both the dollar and the euro, reflecting market reactions to the economic downturn.
(With Reuters Inputs)
