PNN – The latest data from the British National Statistics Center was published, showing that the British economy entered a period of recession at the end of last year (2023); An issue that has severely damaged the credibility of the conservative ruling party on the eve of the national elections.
According to the report of Pakistan News Network, the British National Statistics Center (ONS) announced that the GDP index decreased by 0.1% in the third quarter of 2023 and by 0.3% in the fourth quarter. In this way, England is officially in recession.
An economic recession occurs when the GDP index decreases for two consecutive periods. In fact, the gross domestic product (GDP) index is a measure or attempt to measure the economic activities of companies, governments and individuals in a country. If it’s increasing, it means the economy is growing and people are doing more on average and getting a little richer. But if GDP is falling, that means the economy is shrinking, which can be bad news for businesses.
According to the report of the British National Statistics Center, the country’s GDP index has been on a downward trend since the second half of last year, and thus England has been in recession.
Earlier in 2011, it was reported that the British economy is in recession; But after reviewing the figures, it became clear that such a situation did not occur. This is while according to the latest report of the British National Statistics Center, the country’s economy has gone through a downward trend in all three areas of services, production and construction.
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This news comes as British Prime Minister Rishi Sonak is trying to convince the public that the country’s economy is on the path to prosperity in the months remaining before the general election. According to the announced schedule, the general elections in England are scheduled to be held in the second half of 2024.
Rachel Reeves, the finance minister of the British shadow government (Labor) said; Figures from the Center for National Statistics show that Rishi Sunak has “broken his promise to grow the economy and left the country in recession.” “Conservatives cannot claim that their economic plan is working and that they have overcome 14 years of financial problems in the country.”
However, British finance minister Jeremy Hunt called last year a difficult year for the country’s economy and claimed that the downward trend in the inflation rate shows that the government’s plan for economic prosperity is working.
The inflation rate in England has dropped from 11% last year to 3.4% after a fluctuating period, and the government claims to have achieved the promise it made at the beginning of last year to halve inflation. This is while inflation in key sectors affecting the cost of living crisis in this country, such as food and housing, is increasing, and according to the leader of the Labor Party, people’s bank accounts show a different reality.
The fact is that the British economy is in the worst state of the last half century according to statistics. Not long ago, the Economist magazine called the current state of the British economy a chronic crisis, which was exacerbated by the country’s exit from the European Union.
It is stated in this report; England is caught in a 15-year-old uncertainty. The country tends to think of itself as a dynamic, free-market place, but its economy lags behind many of the world’s rich countries. According to the Economist, a deep hole has taken root in the British economy and leaving the European Union has worsened the situation.