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It's the dreaded R word. A recession has been confirmed for the UK
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So how is this going to impact you? According to the Office for National Statistics, gross domestic product shrank by 0.3% in the last three months of last year
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A sharper fall than economists predicted. This means the UK fell into a very shallow recession in the second half of last year
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after the 0.1% contraction recorded in the third quarter. This indicates two consecutive quarters of negative growth for the UK
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When this happens, it's called a technical recession. So what does that actually mean
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Usually when things are going well, a country's economy is on the up and GDP is rising
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That means people's incomes are getting a boost. But every now and then the economy takes a nose dive, GDP starts to drop and that's a pretty clear sign that things aren't going so great
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And when the economy's in a slump, it can really pinch people wallets Some people might end up losing their job and unemployment becomes a bigger issue and if you a fresh graduate or you just left school getting that first job could be a real challenge Even if you already working climbing the career ladder might be trickier and getting a pay
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rise could be a struggle. But when the economy takes a hit, not everyone feels the pain in the same way
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Inequality tends to rear its head and some people, like those relying on benefits, can really
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feel the squeeze. While this all sounds quite bleak, a number of things. of economists predict that better times are ahead in 2024. Here's why
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Inflation fell fairly rapidly in the second half of last year, fueling bets that interest
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rates would start being lowered. In fact, the Bank of England's chief economist has confirmed
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that rate cuts are a when rather than an if. Lower inflation has also given households a real
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income boost. ysts predict that real wages will grow at 1.75% in 2024, making it one of the highest
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growth rates in the last decade. Here at City AM, we would like to know, have you started to feel
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the pinch of the recession? Let us know how it's impacting you in the comments
