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The GDP result disappoints and the United Kingdom enters a technical recession

The GDP result disappoints and the United Kingdom enters a technical recession

Prime Minister Rishi Sunak: UK economy has accumulated two consecutive quarters of contraction, despite little expansion compared to 2022| Photo: EFE/EPA/HOLLI ADAMS

The United Kingdom's Office for National Statistics (ONS) announced this Thursday (15) that the country has entered a technical recession, accumulating two consecutive quarters of economic contraction.

British gross domestic product (GDP) fell by 0.3% in the last quarter of 2023, after falling by 0.1% between July and September. Year-to-date, there is a slight expansion of 0.1% compared to 2022.

One of the main explanations for the pullback between October and December is a reduction in business sales, household spending and government purchases. In the services sector, a strike by doctors and a drop in school attendance contributed to poor GDP performance, while the education sector saw a 0.8% decline.

In an interview with the BBC, Chancellor of the Exchequer Jeremy Hunt said Prime Minister Rishi Sunak's government was projecting better numbers in the coming quarters.

“When the Prime Minister promised [de gerar
crescimento econômico]”He was very clear: fighting inflation must come first,” Hunt said.

“The general picture is that, in fact, since then, the economy has been very resilient, unemployment is low, real wages have been rising for six months. If we stand firm now, we can see light at the end of the tunnel,” he said.

Infographics Gazeta do Povo[Clique para ampliar]

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