November 14, 2022

After the most recent official numbers revealed that the economy declined between July and September, the UK appeared to be entering a recession.

Between July and September, the GDP shrank by 0.2% as firms and people were affected by rising costs.

When an economy contracts for two consecutive three-month periods, a nation is said to be in a recession. By the end of the year, the UK is anticipated to have joined one.

The recession will be the longest on record, according to the Bank of England.

Since the cost of things like food, fuel, and energy has skyrocketed due to a number of circumstances, including the conflict in Ukraine, a recession has been widely predicted in the UK.

Many households are now struggling as a result, and the economy has already begun to suffer.

“I am under no doubt that there is a rough path ahead,” Chancellor Jeremy Hunt stated.

He forewarned that “very tough measures” would be needed to restore economic stability and confidence.

In the upcoming week’s Autumn Statement, Mr. Hunt is expected to reveal his tax and spending proposals.

According to the Office for National Statistics (ONS), which released the data, a fall in manufacturing that was observed “across most industries” was what caused the economy to contract in the three months leading up to September.

Shops were particularly hard impacted in the customer-facing industries, according to Darren Morgan, director of economic statistics at the ONS.

He claimed that the bank holiday for Queen Elizabeth II’s burial contributed to the weak performance of the economy in September. The economy contracted by 0.6% in September alone.

Since prices have been increasing quickly for 40 years, many people have had to reduce their spending as a result of the pressure from higher costs.

Source: BBC
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