UK enters technical recession as economy shrinks amid high costs and rates

UK economy contracted 0.3% in Q4 2023, meeting definition of a technical recession (2 consecutive quarterly declines in GDP). First recession since 2020.

Recession comes despite Sunak's pledge to "grow the economy." Opposition blames government for failing to turn around 14 years of Tory economic decline.

All main sectors - manufacturing, construction, services - shrank in Q4. Household spending and exports also fell amid high inflation and interest rates.

But economy was flat overall in 2023. Recession is shallow compared to pandemic crash. Government hopes signs of "turning a corner."

Today's GDP figures could sway close parliamentary by-elections. Polls opened as data released. An official recession label seen as politically damaging.