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UK enters technical recession

This morning, the Office for National Statistics (ONS) published the latest UK GDP data, showing that the UK economy had shrunk by 0.3% in the last quarter of 2023, meaning the UK has entered a technical recession.

Moneyfarm Analyst Jack Amy spoke to media just moments after the data release, saying:

“The UK has officially entered a technical recession, marked by a 0.3% decline in GDP during the fourth quarter of 2023. This downturn follows a 0.1% drop in the third quarter, indicating a persistently stagnant economy. The timing of this recession is particularly unfavourable for the government, given that it coincides with an election year. However, it’s essential to recognise that the UK has experienced sluggish growth in recent years. Against this backdrop, a 0.3% decline amid high interest rates and looming inflation isn’t entirely unexpected.

Yet, there exists a significant issue that demands urgent attention – living standards in the UK have remained stagnant for the past 15 years. Addressing this requires a radical overhaul of the economy, infrastructure, and skills development.”

Jack Amy: Jack joined the Asset Allocation team in February 2022 as a Portfolio Analyst, after working in the Investment Advisory Team at Moneyfarm. Jack graduated in 2016 from the University of Birmingham with a degree in Economic and Social History, and gained experience directly with Moneyfarm’s customers in his role with the Investment Advisory Team. Jack is passionate about financial markets and technology, and is currently enrolled in MSc Computer Science at Birkbeck, University of London. Jack is a member of the Investment Committee.

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