A recession is defined as two quarters of falling gross domestic product (GDP). So far this year, the UK has narrowly avoided this, as there was 0.2% growth between April and June.
However, should the economy shrink between now and Christmas – which many forecasters expect – then the UK will be in recession.
Among the reasons for impending recession are rising food and energy prices, so independent retailers will find themselves at the sharp end.
The Bank of England has said it expects the predicted recession to be the longest since records began in the 1920s and has forecast a “very challenging” two years.
Similarly, chancellor Jeremy Hunt has warned of “a tough road ahead”. Hunt is about to reveal his tax and spending plans in the Autumn Statement next week, which comes during the worst cost-of-living crisis since the 1950s.
GDP is the total of all the goods and services produced by the UK and its decline is seen as an objective measure of economic performance.
Its fall in the latest quarter was attributed by the ONS to a decline in manufacturing but also to retail, with shops being particularly hard hit.
The ONS said that this was caused by energy price rises affecting disposable household income.
The Office for National Statistics (ONS) announced this morning that the UK economy shrank by 0.2% between July and September, confirming fears that the country will be in recession by the end of the year. A recession is defined as two quarters of falling gross domestic product (GDP). So far this year, the UK has …
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