As the economy slows a Recession looms

For the first time in 16 years the economy has shrank between July and September. This confirms that the UK is on the brink of a recession. The drop was bigger than expected with output falling by 0.5%. This saw a knock in UK shares and the strength of the pound fell. If the economy slows in the fourth quarter of the year the UK will be classed as being in a recession.

The chancellor has voiced his confidence in the UK and believes that they would be able to get through it. He commented that it would be a difficult period but was confident that the UK would be able to work through it. The chancellor believes that the UK has to work with other countries to ensure that the efforts are replicated throughout the world.