Expanding the economy is one of Prime Minister Rishi Sunak’s five main priorities.
How is the state of the economy measured?
The Gross Domestic Product (GDP) of the United Kingdom is released by the Office for National Statistics (ONS). This represents the total worth of everything produced in the UK.
A nation’s economy expands, its GDP increases, and as a result, average salaries often rise during normal times.
However, occasionally the GDP declines and the economy contracts, which is an unfavorable indicator that could negatively impact people’s finances.
How does GDP impact me and what does it mean?
When was the last recession in the United Kingdom?
If the GDP declines for two consecutive quarters, or three months, the UK is in recession.
According to the most recent data, the economy contracted by 0.3% in October and December of 2023.
That implies that the economy entered a recession at the end of 2023 and comes after a 0.1% decline between July and September.
The UK economy expanded by 0.1% during the course of the year.
At the height of the coronavirus outbreak in 2020, the UK experienced its most recent recession.
Even though it was short lived—just six months—the 20.4% decline from April to June 2020 was the highest on record.
The previous recession, which lasted for five quarters, or fifteen months, began in 2008 as a result of the global financial crisis.
