UK Enters Technical Recession But Forecasts Suggest Mild Downturn

• UK is now officially in a recession, with GDP declining 0.3% in Q4 2023 after 0.1% fall in previous quarter • This meets commonly used definition of a recession - two consecutive quarters of economic decline • But some argue this definition, created in the 1960s, is "barmy" and recessions should be defined differently • UK growth has stagnated in past two years, expected to improve only marginally this year • While a recession by traditional definition, forecasts suggest 0% growth rather than substantial decline