The British economy went into recession at the end of last year. In the fourth quarter, gross domestic product (GDP) fell by 0.3 percent compared to the previous quarter, the ONS statistics office in London reported. Researchers were surprised by the strength of the dumper. They expected an average decline in economic output of only 0.1 percent in the October to December months.
Europe's second-largest economy already shrank by 0.1 percent in the third quarter. When economic output falls for two consecutive quarters, economists speak of a technological recession.
Regression to Sunak
The development is seen as a setback for Prime Minister Rishi Sunak in an election year. He promised to boost the economy. Finance Minister Jeremy Hunt indicated the figures were not surprising. But the country is on the right track and the government will stick to its plan to cut taxes and fight inflation. The opposition Labor Party, on the other hand, criticized the recession as the result of 14 years of chaotic Conservative politics. Great Britain elects a new parliament this year. Labor leads the Tories in all polls.
As reported by the Statistics Office, economic performance in December grew weaker than the previous month. A decline of 0.1 percent was reported in December. In addition, GDP grew somewhat weaker in November than previously known. The increase was revised to just 0.2 percent, after previously reporting a 0.3 percent increase. Unlike other countries such as Germany, Great Britain publishes monthly data on economic performance.
However, the country's industrial production remained surprisingly strong. The Bureau of Statistics reported that output rose by 0.6 percent in December. Analysts had expected a slight decline. Additionally, manufacturing growth was revised upwards in November.
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