UK’s economy has fallen into a recession in the second half of 2023, a tough backdrop for Prime Minister Rishi Sunak who has promised to boost growth ahead of an election expected later this year.
The Office for National Statistics (ONS) said the economy grew 0.1% across 2023 compared with 2022, with output expected o pick up slightly in 2024 but only to 0.25% growth.
Official data showed Gross domestic product (GDP) contracted by a worse-than-expected 0.3% in the three months to December, having shrunk by 0.1% between July and September.
Finance minister Jeremy Hunt said there were signs the British economy is turning a corner, insisting that the government must stick to the plan, which is to cut taxes on work and business to build a stronger economy.
Media reports said Hunt was seeking to cut billions of pounds from public spending plans to fund pre-election tax cuts in his budget, if penned in by tight finances.
Britain’s economy has been stagnating for nearly two years, though recessions in the country have become increasingly rare as the economy grows larger and more mature.
