UK enters technical recession as economy shrinks 0.3% in Q4 2023

Commentators predict the recession will be a 'shallow and short-lived one'

Cristian Angeloni
clock • 2 min read

The UK economy shrunk by 0.3% in the last three months of 2023, placing it in a technical recession, according to data from the Office for National Statistics (ONS) published today (15 February).

A technical recession happens when gross domestic product (GDP) contracts for two consecutive quarters, as GDP fell 0.1% in the third quarter of last year. However, the ONS noted that, despite the two consecutive contractions, GDP is estimated to have risen by 0.1% in 2023 compared with 2022, the "weakest change in real GDP since the financial crisis in 2009". The 0.3% fall in Q4 was fuelled by decreases in all three main sectors: 0.2% in services, 1% in production and 1.3% in construction output, the agency said. Similarly, there were falls in the volume of net trade, household sp...

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