The UK fell into recession at the end of 2023 after the economy shrank by 0.3% in the final three months of the year, official figures show.
Gross Domestic Product, or GDP, fell by 0.3% in the last three months of 2023, which is a sharper fall than economists were expecting.
This gave the UK consecutive falls in GDP after a decrease of 0.1% in the three months before, between July and September 2023.
Reacting to the news this morning, Chancellor Jeremy Hunt said low growth was not a surprise.
He said: "High inflation is the single biggest barrier to growth which is why halving it has been our top priority. While interest rates are high - so the Bank of England can bring inflation down - low growth is not a surprise.
"But there are signs the British economy is turning a corner - forecasters agree that growth will strengthen over the next few years, wages are rising faster than prices, mortgage rates are down and unemployment remains low. Although times are still tough for many families, we must stick to the plan - cutting taxes on work and business to build a stronger economy."
The UK's latest inflation figures - published yesterday - showed that the rate had remained at 4%. While there was no increase, Hunt acknowledged this was still double the 2% target set by the government and Bank of England.
Economists expect the recession to be mild and short-lived.
Christopher Breen, an economist for the Centre for Economics and Business, says it may not extend beyond two quarters.
"We do think that this could be the end of the recession," Breen old BBC Breakfast.
"This is a very shallow recession if you look at the previous recessions we've had."
He added: "Everyone knows the reason why this happened, with the cost of living crisis. For a lot of last year people's wages haven't been keeping up - however that has changed and wages are now rising faster than prices."
FTSE 100
The UK's flagship share index, the FTSE 100, was up 42-points at 7,610 shortly after opening this morning.
Brent crude oil futures was down -0.25% today, trading at $81.40 a barrel.
Companies reporting today
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