According to the UK's National Statistics Office (ONS), the country's economy contracted by 0.3% in the fourth quarter of 2023 compared to the previous three months. This result coincided with analysts' forecasts. In the third quarter of last year, UK GDP also decreased by 0.1%. A twofold decline in GDP for two consecutive quarters indicates that the economy is in recession. This is the first technical recession in the country since the COVID-19 pandemic in 2020. Analysts note that high inflation, rising borrowing costs and weak external demand have had a negative impact on business activity in the country. In October-December, consumer spending in Britain decreased by 0.1%, government spending increased by 0.1%, and gross capital investment increased by 0.9%. The decline also affected various sectors of the economy: in the industrial sector, the decline was 1.1%, in the construction sector – 0.9%, and in the service sector – 0.1%. On an annual basis, British GDP contracted by 0.2% in the fourth quarter, while growth of 0.2% was recorded in the third quarter. The final estimate is consistent with the preliminary data and the market forecast. According to the results of the whole year 2023, UK GDP increased by 0.1%.
