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The annual GDP growth rate in the UK is 0.1%, and it is in a continuous recession. Where is the future?

Updated: Jun 5

In the past year, developed countries have experienced some challenges, but the situation in the UK is relatively poor.

Although compared to Germany and Japan, the situation in the UK is relatively good, at least it did not lose its position as the world's third largest economy in 2023 with a GDP growth rate of -0.3%.


However, the GDP growth rate in the UK is only 0.1% for the whole year, although it can barely be called a growth, it is only barely surviving.

According to data released by the UK Office for National Statistics on February 15th, the UK experienced negative economic growth in both the third and fourth quarters of 2023 (-0.1% in the third quarter and -0.3% in the fourth quarter).


This two consecutive quarters of decline is called a technical recession, which is not closely related to the overall environment and is mainly caused by the stagnation or regression of one's own technological progress.


The performance of Britain falling into a technological recession is essentially obvious.

In the past, Britain was the world's first industrial country, with its steel production accounting for 40% of the world's peak, which was a huge achievement at that time.


However, today's UK not only has a significant decline in production, but even basic steel production is facing difficulties.

According to a report by The Guardian on January 18th, the UK will become the only country in the G20 that cannot produce steel raw materials on its own.


This dilemma from the past glory to the present highlights the stagnation and regression of the UK's economic development.


From the performance since the 2008 financial crisis, the UK's economic growth has been sluggish.

According to data from the UK Office for National Statistics, the total GDP in 2008 was £ 1.92 trillion, increasing to £ 2.27 trillion by 2023, with an average annual growth rate of only 1.12%.


At the same time, per capita income in the UK has hardly increased.


Compared with other countries, the economic development of the UK is significantly lagging behind, which can to some extent explain why the UK has been unable to overcome its economic difficulties for a long time.


In 2010, when Cameron became the Prime Minister of the UK, the country had not yet fully recovered from the financial crisis, and the European debt crisis followed one after another.


Cameron has taken a series of measures, including reducing expenses and reducing the burden on businesses, and has achieved certain results.


For example, the unemployment rate in the fourth quarter of 2011 decreased from a high of 8.4% to 4.9% in the second quarter of 2016.

In addition, the proportion of deficit and debt to GDP has also significantly decreased.


However, Cameron's decision also brought follow-up issues, especially regarding the decision to Brexit.


Despite Cameron's achievements in the economy, he also bears some responsibility for the future recession and turbulence in the UK.


He proposed holding a nationwide Brexit referendum with the aim of winning the midterm elections, but did not expect the referendum results to push Britain towards Brexit.


This decision has led to the emergence of many problems, including the depreciation of the pound, setbacks in the financial industry, corporate withdrawal, and intensified political divisions.

Although Cameron quickly announced his resignation, the impact of Brexit has become an important variable in the political and economic development of the UK.


After Brexit, the UK faced a series of challenges, not only affecting its economy, but also highlighting domestic and international conflicts.


Scotland and Northern Ireland hold different attitudes towards Brexit, and even consciously seek independence.

Brexit has led to tension within the EU, causing dissatisfaction among the Northern Irish government and ultimately leading to a shutdown.


The British government has to face multiple pressures such as internal and external difficulties, economic downturn, and political instability, and its future development prospects are very worrying.

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