A blow to Rishi Sunak in an election year: the UK has entered a recession

People shop on Oxford Street in London, Britain on April 10, 2023. REUTERS/Anna Gordon/File

the UK economy I entered a Technical recession at the end of 2023 When serializing Two consecutive quarters of contractionWith a decline in GDP 0.3% October-December, the Office for National Statistics (ONS) reported on Thursday.

This decline in GDP in the last three months of the year was added to the fall of A 0.1% The agency indicated that between July and September, when the first two accounts were issued.

The Office for National Statistics noted that despite the technical recession in that period, the economy grew rapidly 0.1% Compared to 2022.

In the third quarter of 2023, contractions occurred in major economic sectors, with a decline in… 0.2% in services, 1% in industrial production, and 1.3% in construction.

People walk past a WH Smith store in Manchester, Britain, May 26, 2023. REUTERS/Jason Cairnduff/File

In addition, there has been a decline in the volume of net trade and spending by both the government and households, the Office for National Statistics noted.

that it The first time the UK has entered a recession since it did so in the first half of 2020Due to the effects of the epidemic.

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The data represents a blow, in a general election year, to the Conservative Prime Minister. Rishi SunakWhich promised to develop the economy as one of its five priorities.

British Prime Minister Rishi Sunak speaks to business leaders during the first meeting of his business council inside 10 Downing Street, central London, Britain, on February 14, 2024. Daniel Lyell/Pool via Reuters

After learning the results, the Minister of Economy said: Jeremy HuntHe said that low growth “It's not a surprise” As long as the Bank of England keeps interest rates high to keep inflation down.

Labour's economics spokesman Rachel ReevesFor his part, he stated that Sunak's promise to develop the economy has now come true “broken”.

Reeves declared that the Prime Minister “can no longer say that his plan is working”, and defended that his party alone “has a long-term plan for more jobs, more investment and lower bills.”

(With information from EFE)

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