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The UK economy has officially entered a recession, with the latest reports from the Office of National Statistics (ONS) showing a 0.3% fall in the gross domestic product (GDP) in the last three months of 2023. This followed 0.1% negative economic growth from July to September 2023.
With the by-elections expected to be held by January 2025, the recession will deal a huge blow to Rishi Sunak's Conservative Party governance, which made growing the economy one of its five pledges in January 2023.
In the wake of the recession hitting the UK's economy, citizens took to social media to express their outrage. One user sarcastically posted on X:
"Well done, Tory government. Well done Brexiters. Happy now?"
Citizens react to news of a recession in the UK
The news of a recession hitting the UK caused concern amongst the country's citizens, who were worried about what this might mean for their livelihoods. Even though it isn't expected to be as bad as the global financial crisis of 2008 and 2009, the UK economy has not been stable since the pandemic.
UK citizens turned the blame on Prime Minister Rishi Sunak and his Tory government, who pledged to "grow the economy" in his first major domestic speech in 2023.
According to the BBC, Shadow Chancellor Rachel Reeves claimed that Sunak's pledge to grow the economy was "in tatters", adding:
"The prime minister can no longer credibly claim that his plan is working or that he has turned the corner on more than 14 years of economic decline under the Conservatives that has left Britain worse off. This is Rishi Sunak’s recession and the news will be deeply worrying for families and business across Britain."
Despite the last two quarters experiencing negative growth, the cumulative economy for 2023 as a whole grew by 0.1%.
According to the BBC, the UK economy is in recession following two back-to-back quarters of negative growth. However, this is projected to be mild and short-lived as opposed to its previous financial crashes.
As per Sky News, the frequent storms and rainfall, coupled with the cost of living crisis caused the GDP to dip a sharp 0.3%, as opposed to the predicted drop of 0.1%. Frequent strikes and walkouts plagued the UK throughout 2023, contributing to a substantial hit to the economy.
The ONS reported that December saw a staggering decrease in retail sales, the odds of which were not seen since the COVID-19 pandemic lockdown in January 2021. Following the pandemic, the UK economy struggled to pick up the pace owing to an all-time high of unemployment due to long-term sickness.
As per the BBC, Chancellor Jeremy Hunt is less than a month away from unveiling his latest budget. Speaking about the recession, he said that low growth 'was not a surprise" but there were "signs the British economy is turning a corner".
"High inflation is the single biggest barrier to growth which is why halving it has been our top priority. While interest rates are high - so the Bank of England can bring inflation down - low growth is not a surprise."
He continued:
"But there are signs the British economy is turning a corner; forecasters agree that growth will strengthen over the next few years, wages are rising faster than prices, mortgage rates are down and unemployment remains low."
He also urged the government to "stick to the plan" to cut down taxes on work and businesses to build "a stronger economy."
