UK RECESSION

UK economy shows no growth in April in bad timing for Sunak

In early 2024, Britain's economy saw a quick recovery but stalled in April due to drops in industrial and construction output, posing challenges for Prime Minister Rishi Sunak before the July 4 election. The Office for National Statistics reported flat GDP in April following a March rise, contrary to economist predictions. The country is facing declining employment and rising unemployment, prompting opposition criticism of Sunak's optimistic campaign narrative.

UK recovering faster than expected after slipping into technical recession: IMF

The UK economy is approaching a soft landing, with a recovery in growth expected in 2024, strengthening in 2025, IMF said. Soft landing in economic parlance is managing inflation at comfortable levels without hurting economic growth.

UK inflation rate slows to 2.3% in April, lowest reading since July 2021

UK consumer prices rose 2.3 per cent annually in April, down from March's 3.2 per cent, hitting their lowest since July 2021. Prime Minister Rishi Sunak called it a significant economic moment. Despite this, inflation slightly exceeded Bank of England and Reuters forecasts. The BOE aims to stabilize prices at 2 per cent

IMF warns Britain against more pre-election tax cuts

The IMF warned Britain's government about missing its debt target and advised against tax cuts before the election. It increased the economic growth projection for 2024 to 0.7% and suggested interest rate cuts by the Bank of England. Inflation returning to the BoE's target and a forecast of a 'soft landing' after a recession in 2023 were highlighted.

Charting the global economy: BOE sends clearest sign yet of interest-rate cuts

Thirteen economies in developed countries were experiencing per-capita recessions by the end of last year, as reported by Bloomberg Economics.

London's FTSE 100 extends record streak as UK exits recession

London's FTSE 100 hit yet another record high on Friday as investors cheered the dovish tone of the Bank of England, while the British economy grew better-than-expected in the first quarter this year.

UK exits 'recession' with better-than-expected 0.6% GDP growth

Britain's economy grew by 0.6% in Q1 2024, surpassing expectations and ending the previous recession. The Office for National Statistics reported stronger growth than anticipated, contrasting with forecasts. Prime Minister Rishi Sunak may find relief, but opposition claims disconnect. Bank of England predicts continued growth, with March showing 0.4% expansion.

UK court rejects Nirav Modi's fresh bail plea due to 'real, substantial' flight risk

Nirav Modi, a 52-year-old diamond merchant in London, has made a new bail application, but a UK judge rejected it, stating that he still poses a "substantial risk" of absconding justice. The judge accepted the legal team's submission that the long passage of time since the last bail application three and a half years ago constituted a change in circumstances to allow the hearing to go ahead. However, Judge Zani concluded that there remain substantial grounds against bail, as there continues to be a real risk that Modi would fail to attend court or interfere with witnesses.

Record immigration is colliding with housing crises across the world

Many developed countries are facing economic challenges as migration-driven growth falters due to housing shortages. Despite the positive impact of immigration on workforce gaps, housing affordability worsens, leading to per-capita recessions. Countries like Canada and Australia are reevaluating their immigration policies to address these issues and sustain economic growth.

Wet wipes containing plastic to be banned from sale in UK

The devolved regions of Northern Ireland, Scotland and Wales are expected to follow on with their legislation later in the year to make it a UK-wide ban as part of an aligned approach.

Pound hits five-month low as dollar rallies on lower Fed bets

​ Sterling fell to a five-month low on Friday even as data showed the British economy was on course to exit its shallow recession, with all major currencies coming under pressure from a dominant dollar.

UK economy grows in February, shows signs of exiting recession

Britain's economy saw a 0.1% monthly growth in February, with January's figures revised up to 0.3%, indicating a potential exit from recession in early 2024. Economists had anticipated a 0.1% expansion. The economy slipped into a mild recession in the latter half of 2023, posing a political challenge for Prime Minister Rishi Sunak ahead of the upcoming election.

Data confirms UK economy went into recession last year

Gross domestic product shrank by 0.1% in the third quarter and by 0.3% in the fourth quarter, unchanged from preliminary estimates, the Office for National Statistics said on Thursday.

Bank of England says UK recession is modest in historical terms and that upturn is probably underway

Bank of England Gov. Andrew Bailey stated that the UK's economic recession is modest and likely over. The recession, confirmed last week, saw two consecutive quarters of negative growth, resulting in a 0.5% reduction in annual GDP. The recession is a blow for the Conservative Party ahead of the general election.

Charting the global economy: UK, Japan fell into recession at the end of 2023

The euro-area economy is entering 2024 on a weaker footing than previously expected, according to new European Union forecasts that anticipate another year of subdued growth.

How recession in the UK economy can impact Rishi Sunak

Amidst challenges faced by Prime Minister Rishi Sunak, Britain experienced an economic downturn in the latter half of 2023, coinciding with upcoming elections expected in the latter part of this year. This recession aligns Britain with Japan within the Group of Seven advanced economies, although it is projected to be brief and relatively mild compared to historical standards.

UK economy entered recession in second half of 2023

Britain's economy fell into a recession in the second half of 2023, with GDP contracting by a worse-than-expected 0.3% in the three months to December. The fall was the largest since the first quarter of 2021. The Bank of England expects the economy to pick up slightly in 2024, reports say

UK retail sales rise by most in nearly three years, suggesting recession will be short-lived

In January, British retail sales surged by a robust 3.4%, surpassing economists' expectations and marking the largest increase since April 2021, following a sharp 3.3% decline in December, the steepest since January 2021. Analysts suggest this signals a diminishing impact of higher interest rates on consumer spending, indicating a potential exit from recession soon.

Recession hits Japan & UK: What it means for India & all other key details

From Europe to Japan, inflation expectations slows

Inflation expectations declined in Europe, while retail sales and consumer sentiment in the US increased.

Recession-threatened UK economy rebounds in November, official data shows

Britain's recession-threatened economy rebounded in November from the previous month, official data showed on Friday. Separate recent data showed Britain's economy shrank in the third quarter of last year, raising fears of a recession before UK elections expected in 2024.

UK economy shrinks in Q3, suggesting recession might have begun

United Kingdom's economy has seen a contraction of 0.1% in the third quarter of FY23. Gross domestic product was flat in the July-to-September period compared with the previous three months, Office of National Statistics predicted. Finance Minister Jeremy Hunt said the outlook for the economy was not as bad as the updated official figures suggested.

UK economy shrinks, raises risk of recession

It was the first time since July that GDP had shrunk on a month-by-month basis. Sterling fell by about a third of a cent against the US dollar and was weaker against the euro too. Investors added to their bets on the BoE starting to cut interest rates in June 2024, and the yield on 10-year British government bonds fell to its lowest since May.