Economy

UK economy shrinks by 0.2%, recession looms

The United Kingdom appears to be heading into recession after the latest official figures showed the economy shrank between July and September.

 

BBC reported that the economy contracted by 0.2% between July and September as soaring prices hit businesses and households nationwide.

 

A recession is a significant, widespread, and prolonged downturn in economic activity. A popular rule of thumb is that two consecutive quarters of decline in gross domestic product constitute a recession. The UK is set to be in one by the end of the year.

 

Recessions typically produce declines in economic output, consumer demand, and employment.

 

The Bank of England has predicted the recession to be the longest on record.

 

However, the looming recession is no news in the UK, as there had been forecast in the for some time due to the prices of goods such as food, fuel and energy soaring, which is down to several factors, including the war in Ukraine.

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