The UK fell into recession during the final three months of last year, according to official figures from the Office for National Statistics.
The UK is considered to be in recession if GDP falls for two successive three-month periods. It dropped by 0.3% at the end of the year following a fall between July and September.
The economy grew by 0.1% in the whole of 2023.
Alex Veitch, Director of Policy and Insight at the British Chambers of Commerce, said: “A contraction in GDP for the final quarter of 2023 means the UK economy is in technical recession. Businesses were already under no illusion about the difficulties they face, and this news will no doubt ring alarm bells for Government.
“The BCC’s last Quarterly Economic Forecast suggests annual growth below 1.0% for the next two years as firms remained gripped by uncertainty and the twin perils of high inflation and interest rates remain.
“The Chancellor must use his Budget in just under three weeks’ time to set out a clear pathway for firms and the economy to grow.
“Businesses are crying out for a long-term economic plan that reduces the cost pressures they are facing and unlocks the investment they so sorely need.”
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