2024-03-31 13:19:10
The UK economy contracted by 0.3% in the fourth quarter of 2023 compared to the previous three months, according to a report from the National Statistical Office (ONS), which presented the final data, Day.Az reports, citing Interfax.
The consensus forecast of analysts, cited by Trading Economics, also assumed a decline of 0.3%.
In the third quarter of last year, UK GDP decreased by 0.1%.
A decline in GDP for two consecutive quarters means the economy is in recession. There is a technical recession in Britain for the first time since the COVID-19 pandemic in 2020.
High inflation and borrowing costs, as well as weak external demand, have negatively impacted business activity in the country. Consumer spending in Britain in October-December decreased by 0.1%, government spending increased by 0.1%, gross capital investment increased by 0.9%.
The decline in the industrial sector was 1.1%, in the construction sector – 0.9%, in the service sector – 0.1%.
British GDP fell 0.2% year on year in the fourth quarter, compared with growth of 0.2% in the third quarter. The final estimate coincided with the preliminary and market forecast.
At the end of 2023, UK GDP increased by 0.1%.
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