Official statistics indicate that the UK is on the brink of a recession, as revised figures show a downturn in economic performance.
The Office for National Statistics reports a 0.1% decrease in Gross Domestic Product (GDP) for the quarter ending in September, a revision from initial estimates of no growth. Further, the economy is believed to have contracted by 0.3% in October, suggesting the possibility of a decline in the fourth quarter as well.
A technical recession is defined as two successive quarters of economic shrinkage.
Additionally, the UK’s economy reportedly experienced no growth in the second quarter, a downward revision from the initially estimated 0.2% increase. This situation may compel the Bank of England to consider reducing interest rates early in the following year to mitigate a more severe economic slump.
In related news, recent statistics revealed a drop in inflation to 3.9% in November, amidst the challenge of dealing with the highest interest rates in 15 years, standing at 5.25%.
