UK tips into recession in blow to Rishi Sunak

February 16, 2024

The UK economy fell into recession at the end of last year as hard-pressed households cut back on spending amid the cost of living crisis, in a heavy blow to Rishi Sunak’s promise to kickstart growth. It followed a drop of 0.1% in the third quarter, confirming a second consecutive quarter of falling national output – the technical definition of a recession. “This is Rishi Sunak’s recession, and the news will be deeply worrying for families and business across Britain,” she said. The director of economic statistics at the ONS, Liz McKeown, said: “Our initial estimate shows the UK economy contracted in the fourth quarter of 2023. Economic growth is forecast to outpace France and Germany this year, at 0.7%, according to the Organisation for Economic Co-operation and Development, but significantly trailing the US and several other advanced economies.