Data confirms UK fell into recession last year
The UK economy fell into recession in the second half of last year, according to final figures released on Thursday by the Office for National Statistics.
The data showed that GDP contracted by 0.3% in the last three months of the year, unrevised from an earlier estimate. This followed a 0.1% contraction in the period from July to September.
Chancellor Jeremy Hunt said in response to the data: "Last year was tough as interest rates had to rise to bring down inflation, but we can see our plan is working.
"Inflation has fallen decisively from over 11% to 3.4%, the economy grew in January and real wages have increased for eight months in a row.
"Our cuts to National Insurance will boost growth by rewarding work and putting over £900 a year back into the average earner’s pocket."
Ashley Webb, UK economist at Capital Economics, said: "Overall, today’s data release does not change much. The UK’s mild technical recession at the end of last year was as mild as previously thought and the economic recovery is probably already underway.
"And our forecast for inflation to fall further than the consensus and for interest rates to be cut faster and further than current market pricing suggests the economic recovery in 2024 and 2025 will be stronger than most expect."