The UK has fallen into recession: What does this mean for you and your money?
But what is a recession? So, the Office for National Statistics regularly publishes figures for the UK’s Gross Domestic Product or the GDP. This calculates the value of all goods and services which the UK produces. Usually, as the country’s economy grows, the GDP rises. But when the economy shrinks, the GDP falls. And if the GDP falls for two successive three-month periods, this puts the UK into a recession.
Transcript
00:00 According to official figures, the UK economy fell into recession during the final three
00:07 months of 2023. But what is a recession? So, the Office for National Statistics regularly
00:13 publishes figures for the UK's Gross Domestic Product, or the GDP. This calculates the value
00:19 of all goods and services which the UK produces. Usually, as the country's economy grows, the
00:25 GDP rises. But when the economy shrinks, the GDP falls. And if the GDP falls for two successive
00:32 three-month periods, this puts the UK into a recession. Now, when a recession happens,
00:38 it means the cost of living can increase, companies may reduce their staffing levels
00:42 in order to save money, and it can be difficult to find new employment. The last recession
00:48 was in 2020, at the height of the COVID-19 pandemic. This only lasted for six months,
00:53 though the full recorded was the largest on record.
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