RateCaptain
  • Home
    • About Us
    • Contact Us
  • FX Rates
  • Money Market
  • Cryptocurrency
  • Commodities
  • Corporates
No Result
View All Result
Subscribe
  • Home
    • About Us
    • Contact Us
  • FX Rates
  • Money Market
  • Cryptocurrency
  • Commodities
  • Corporates
No Result
View All Result
RateCaptain
No Result
View All Result
Home Economics

JAPA EFFECT: UK Officially Enters Recession as Economic Downturn Persists

Stephen Akudike by Stephen Akudike
February 15, 2024
in Economics, inflation
Reading Time: 2 mins read
A A
0
UK Inflation Hits Two-Year Low at 4.6%, Boosting Migration Prospects
Share on FacebookShare on TwitterShare on WhatsappShare on Telegram

The United Kingdom’s economy has officially entered a recession, with the latest data from the Office for National Statistics (ONS) revealing a consecutive decline in Gross Domestic Product (GDP) for the fourth quarter of 2023. This downturn, characterised by a 0.3% contraction, follows a similar 0.1% decline in the preceding quarter, meeting the technical criteria for a recession.

The recessionary trend was primarily driven by downturns in key sectors such as manufacturing, construction, and wholesale, which significantly contributed to the overall decline in GDP. This economic downturn underscores the persistent challenges facing the UK’s economy amid global uncertainties and domestic policy issues.

AlsoRead

Nigeria’s Inflation Eases to 20.12% in August, Prompting Calls for CBN Rate Cuts

African Nations Grapple with Soaring Borrowing Costs in 2025 Amid Inflation Surge

CBN Holds Policy Rates Steady Amid Global Economic Challenges

Political Implications Amid Economic Challenges
The timing of the recession announcement poses a significant challenge for Prime Minister Rishi Sunak, particularly with the upcoming general election looming. The economic downturn could potentially impact voter sentiment, further complicating the governing Conservative Party’s electoral prospects.

According to Capital Economics analyst Ruth Gregory:

“The news that the UK slipped into technical recession in 2023 will be a blow for the prime minister on a day when he faces the prospect of losing two by-elections. But this recession is as mild as they come, and timely indicators suggest it is already nearing an end.”

The Prime Minister’s commitment to economic growth faces scrutiny, with the Conservative Party grappling to retain its strongholds amidst economic headwinds and electoral challenges.

Outlook and Responses to Economic Downturn
Despite the recessionary pressures, some analysts and government officials remain cautiously optimistic about the UK’s economic outlook. Finance Minister Jeremy Hunt highlighted the challenges of high inflation and interest rates but suggested that signs of economic recovery were emerging.

Hunt stated:

“While interest rates are high – so the Bank of England can bring inflation down – low growth is not a surprise. 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.”

However, the opposition has criticized the government’s economic policies, citing prolonged economic decline as evidence of policy failure. As the UK navigates through inflationary pressures and global uncertainties, the focus remains on strategic measures to stimulate growth and mitigate the recession’s impact on families.

 

Tags: Conservative PartyEconomic DownturnEconomic PolicyGDPLabour PartyRecessionRishi SunakUK economy
Previous Post

Inflation Rate Surges to 29.90% in January 2024- NBS

Next Post

Food Inflation Hits 35.4%, Sparks Protest in Northern Nigeria

Related News

Nigeria’s Inflation Eases to 20.12% in August, Prompting Calls for CBN Rate Cuts

by Stephen Akudike
September 16, 2025
0

Nigeria’s headline inflation rate dropped to 20.12% in August 2025, marking its fifth consecutive month of decline from 21.88% in...

IMF Lists Top 10 African Nations with Highest Debt Burdens

African Nations Grapple with Soaring Borrowing Costs in 2025 Amid Inflation Surge

by Akpan Edidong
August 6, 2025
0

Across Africa, central banks are wielding high Monetary Policy Rates (MPRs) as a weapon against persistent inflation, currency volatility, and...

NEC Affirms CBN $3 Billion Loan for Naira Stability

CBN Holds Policy Rates Steady Amid Global Economic Challenges

by Stephen Akudike
July 31, 2025
0

The Central Bank of Nigeria (CBN) maintained its key monetary policy instruments at the July 2025 Monetary Policy Committee (MPC)...

Nigeria and UK Set to Sign Enhanced Trade Investment Partnership Agreement

UK-Nigeria Standards Partnership Boosts Nigerian Exports with Zero Tariffs for 3,500 Products

by Akpan Edidong
July 25, 2025
0

Nigeria’s export sector received a significant lift with the launch of the third phase of the UK-Nigeria Standards Partnership Programme,...

Next Post
Nigeria’s Inflation Climbs to 19.6% in July 2022

Food Inflation Hits 35.4%, Sparks Protest in Northern Nigeria

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Recommended

Leading Banks Struggle with Capital Deficits: Zenith Bank and Others Strive to Meet CBN Standards

Why Nigeria’s Banks and Insurers Are Growing – But Adding Less to the Economy Than Before

December 5, 2025
FEC Approves Restructuring and Rationalization of Federal Government Agencies

FG Clears N185bn Gas Debt in Major Push to End Nigeria’s Electricity Woes

December 5, 2025

Popular Story

  • Shocking Revelation: Nigeria’s Tax-to-GDP Ratio Soars, Unveiling Hidden Revenue.

    Foreign Companies Lead in Tax Contributions as Naira Weakens: Local Firms Struggle

    0 shares
    Share 0 Tweet 0
  • Producers Issue Warning of Cement Price Surge from N5,000 to N9,000, Citing Reasons

    0 shares
    Share 0 Tweet 0
  • Nigeria’s Corporate Bonds Raising N3.44 Trillion in Two Years

    0 shares
    Share 0 Tweet 0
  • Fidelity Bank Soars Over 38% in September, Briefly Exceeds ₦17

    0 shares
    Share 0 Tweet 0
  • Rice Prices Surge by 81% and Onions See a 123% Increase in One Year

    0 shares
    Share 0 Tweet 0
RateCaptain

RateCaptain

We bring you the most accurate in new and market data. Check our landing page for details.

  • Home
  • About Us
  • Privacy Policy
  • Terms & Conditions
  • Disclaimer
  • Cookie Policy
  • Contact Us

Copyright © 2022 RateCaptain - All rights reserved by RateCaptain.

No Result
View All Result
  • Home
    • About Us
    • Contact Us
  • FX Rates
  • Money Market
  • Cryptocurrency
  • Commodities
  • Corporates

Copyright © 2022 RateCaptain - All rights reserved by RateCaptain.

RateCaptain
Manage Cookie Consent
To provide the best experiences, we use technologies like cookies to store and/or access device information. Consenting to these technologies will allow us to process data such as browsing behavior or unique IDs on this site. Not consenting or withdrawing consent, may adversely affect certain features and functions.
Functional Always active
The technical storage or access is strictly necessary for the legitimate purpose of enabling the use of a specific service explicitly requested by the subscriber or user, or for the sole purpose of carrying out the transmission of a communication over an electronic communications network.
Preferences
The technical storage or access is necessary for the legitimate purpose of storing preferences that are not requested by the subscriber or user.
Statistics
The technical storage or access that is used exclusively for statistical purposes. The technical storage or access that is used exclusively for anonymous statistical purposes. Without a subpoena, voluntary compliance on the part of your Internet Service Provider, or additional records from a third party, information stored or retrieved for this purpose alone cannot usually be used to identify you.
Marketing
The technical storage or access is required to create user profiles to send advertising, or to track the user on a website or across several websites for similar marketing purposes.
Manage options Manage services Manage {vendor_count} vendors Read more about these purposes
View preferences
{title} {title} {title}
?>