Britain Slows to Recover: GDP Contracts in Fourth Quarter and Inflation Remains High

By Eleanor Harrison Mar28,2024
Reuters reports: Data confirms UK economy entered recession in the past year

The Office for National Statistics has released figures that confirm Britain’s economy entered a recession in the second half of last year. Gross Domestic Product (GDP) contracted by 0.1% in the third quarter and 0.3% in the fourth quarter, remaining unchanged from initial estimates. Despite showing some signs of improvement at the start of 2024, with GDP growing by 0.2% in January and unofficial surveys indicating continued growth in February and March, Britain has been slow to recover from the impacts of the COVID-19 pandemic. As a result, the economy is currently only 1% larger than it was in late 2019, with only Germany within the Group of Seven nations experiencing a worse economic performance.

The Bank of England has stated that British inflation is approaching a level where interest rate cuts can be implemented. The central bank predicts that the economy will only grow by 0.25% this year, while official budget forecasters anticipate a 0.8% expansion in the economy. Following the release of the data, the value of the British pound remained relatively stable against both the U.S. dollar and the euro.

By Eleanor Harrison

As a content writer at newseasoning.com, I infuse flavor into words, crafting compelling stories that captivate and inform our audience. With a keen eye for detail and a passion for creativity, I strive to create content that not only engages but also inspires. Whether I'm concocting a savory blog post or whipping up a spicy product description, I pour my heart and soul into every piece I write. Join me on this flavorful journey as we explore the tantalizing world of content creation together.

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