United kingdom It entered an economic recession in the second half of 2023New statistics confirmed, indicating a difficult economic scenario for the country.
According to official data, GDP The gross domestic product recorded a contraction of 0.3% in the last quarter of the yearfrom October to December, which comes after a 0.1% decline in the previous quarter.
Although the GDP saw successive declines, there was a slight growth of 0.1% throughout 2023, showing a complex picture of the national economic situation.
One of the five commitments made by Prime Minister Rishi Sunak last year was to “grow the economy”.
However, Finance Minister Jeremy Hunt told the BBC that when the commitment was made, Sunak was “very clear that tackling inflation must come first”.
Hunt admitted that today's data was “difficult” but insisted that tackling inflation was the priority.
“The turning point for the economy will come when inflation falls to its 2% target and the Bank of England feels it can cut interest rates,” Hunt said.
He added that though 5%, which is the highest in 15 yearsHe added: “Of course growth will be weaker here, as is the case in many countries.”
Inflation fell from its peak of 11.1% in October 2022 to 4%, double the Bank of England's 2% target.
“The big picture is that since then the economy has become more resilient, unemployment has remained low, and real wages have been rising for six months,” Hunt said.
The British minister said, “If we stand firm now, we can see the light at the end of the tunnel.”
However, Labor and the Liberal Democrats have strongly criticized this situation, describing it as a “Rishi Sunak recession”.
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