The UK's economy shrank by 0.3% in the final quarter of 2023, entering a technical recession for the first time since the aftermath of the COVID-19 outbreak in the initial half of 2020, as high inflation, record borrowing costs, and weak external demand weighed on demand and activity. Household consumption declined by 0.1% (vs -0.9% in Q3) due to lower spending on recreation and culture, household goods and services, transport, and clothing and footwear. Additionally, net trade contributed negatively to GDP as exports fell more than imports, along with inventory changes. On the other hand, fixed investment rose by 0.9%, rebounding from two periods of declines, boosted by increases in other buildings and transport. Finally, government consumption edged up 0.1%, marking a third period of growth, driven by higher spending on public administration and defense, which offset lower activity in education and health. On a yearly basis, the UK economy contracted by 0.2% in the fourth quarter. source: Office for National Statistics

The Gross Domestic Product (GDP) in the United Kingdom contracted 0.30 percent in the fourth quarter of 2023 over the previous quarter. GDP Growth Rate in the United Kingdom averaged 0.58 percent from 1955 until 2023, reaching an all time high of 16.80 percent in the third quarter of 2020 and a record low of -20.30 percent in the second quarter of 2020. This page provides the latest reported value for - United Kingdom GDP Growth Rate - plus previous releases, historical high and low, short-term forecast and long-term prediction, economic calendar, survey consensus and news. United Kingdom GDP Growth Rate - data, historical chart, forecasts and calendar of releases - was last updated on April of 2024.

The Gross Domestic Product (GDP) in the United Kingdom contracted 0.30 percent in the fourth quarter of 2023 over the previous quarter. GDP Growth Rate in the United Kingdom is expected to be 0.20 percent by the end of this quarter, according to Trading Economics global macro models and analysts expectations. In the long-term, the United Kingdom GDP Growth Rate is projected to trend around 0.50 percent in 2025 and 0.40 percent in 2026, according to our econometric models.



Calendar GMT Reference Actual Previous Consensus TEForecast
2024-02-15 07:00 AM QoQ Prel Q4 -0.3% -0.1% -0.1% 0.0%
2024-03-28 07:00 AM QoQ Final Q4 -0.3% -0.1% -0.3% -0.3%
2024-05-10 06:00 AM QoQ Prel Q1 -0.3% 0.2%


Related Last Previous Unit Reference
GDP Growth Rate YoY -0.20 0.20 percent Dec 2023
GDP Constant Prices 566626.00 568397.00 GBP Million Dec 2023
GDP from Agriculture 2908.00 2893.00 GBP Million Dec 2023
GDP from Construction 32464.00 32653.00 GBP Million Dec 2023
GDP from Manufacturing 49715.00 50331.00 GBP Million Dec 2023
GDP from Mining 3374.00 3439.00 GBP Million Dec 2023
GDP from Public Administration 25239.00 24891.00 GBP Million Dec 2023
GDP from Services 409465.00 410117.00 GBP Million Dec 2023
GDP from Transport 16968.00 16777.00 GBP Million Dec 2023
GDP Growth Rate -0.30 -0.10 percent Dec 2023
Gross Fixed Capital Formation 107170.00 106244.00 GBP Million Dec 2023
Gross National Product 668636.00 671335.00 GBP Million Dec 2023

United Kingdom GDP Growth Rate
The services sector is the most important and account for 79 percent of United Kingdom's GDP. The biggest segments within services are: government, education and health (19 percent of total GDP); real estate (12 percent); professional, scientific and technical activities and administrative and support services (12 percent); wholesale and retail trade (11 percent); and financial and insurance (8 percent). Industry accounts for 21 percent of the GDP and the largest segments within this sector are: manufacturing (10 percent of total GDP) and construction (6 percent). The Agriculture sector accounts for only 1 percent of GDP. Composition of the GDP on the expenditure side: household consumption (65 percent), government expenditure (20 percent) and gross fixed capital formation (17 percent). Exports of goods and services account for 28 percent of GDP while imports account for 30 percent, subtracting 2 percent from GDP.
Actual Previous Highest Lowest Dates Unit Frequency
-0.30 -0.10 16.80 -20.30 1955 - 2023 percent Quarterly
SA

News Stream
UK Economy Enters Recession in Q4
The UK's economy shrank by 0.3% in the final quarter of 2023, entering a technical recession for the first time since the aftermath of the COVID-19 outbreak in the initial half of 2020, as high inflation, record borrowing costs, and weak external demand weighed on demand and activity. Household consumption declined by 0.1% (vs -0.9% in Q3) due to lower spending on recreation and culture, household goods and services, transport, and clothing and footwear. Additionally, net trade contributed negatively to GDP as exports fell more than imports, along with inventory changes. On the other hand, fixed investment rose by 0.9%, rebounding from two periods of declines, boosted by increases in other buildings and transport. Finally, government consumption edged up 0.1%, marking a third period of growth, driven by higher spending on public administration and defense, which offset lower activity in education and health. On a yearly basis, the UK economy contracted by 0.2% in the fourth quarter.
2024-03-28
British Economy Enters Recession
The British economy contracted 0.3% on quarter in Q4 2023, following a 0.1% decline in Q3, and worse than market forecasts of a 0.1% fall, preliminary estimates showed. The economy entered recession amid a broad-based decline in output, namely in services (-0.2%, the same as in Q3), particularly wholesale and retail trade (-0.6%); industrial production (-1% vs 0.1%), mostly manufacture of machinery and equipment (-7%) and construction (-1.3% vs 0.1%). On the expenditure side, there was a fall in exports (-2.9% vs -0.8%), imports (-0.8% vs -1.8%); household spending (-0.1% vs -0.9%), particularly lower spending on recreation and culture, miscellaneous goods and services, and transport; and government consumption (-0.3% vs 1.1%), namely lower activity in education and health. Those falls were partially offset by an increase in gross capital formation (1.4% vs -1.4%), mostly other buildings and structures. Considering full 2023, the GDP in the UK edged up 0.1%.
2024-02-15
UK Economy on the Brink of Recession
The British economy shrank 0.1% on quarter in Q3 2023, compared to initial estimates of a flat reading. Figures for Q2 were also revised lower to show no growth instead of a 0.2% expansion, putting the UK at risk of a recession. The services sector fell 0.2%, worse than a 0.1% drop in the first estimate, led by a 1.4% decline in information and communications, namely telecommunications and computer programming. On the other hand, upward revisions were made for both production (0.1% vs no growth) and construction (0.4% vs 0.1%). On the expenditure side, household spending declined more than expected (-0.5% vs -0.4%), mainly dragged by social protection; jewellery, clocks and watches, restaurants and hotels. Also, business investment declined but less than initially estimated (-3.2% vs -4.2%), mainly transport equipment, while government consumption was revised higher (0.8% vs -0.5%). Both exports (-0.6% vs -0.5%) and imports (-1% vs -0.8%) were revised lower.
2023-12-22