UK Chancellor Jeremy Hunt indicates economy to get worse before it gets better

Figures had revealed that the UK economy had shrunk further between August and October. In response to these revelations, Chancellor of the Exchequer in the UK Jeremy Hunt said that before the economy gets better, it’ll get worse.

Amid the soaring prices hitting households and businesses in the UK, the economy has contracted by 0.3 percent during the three months, and the country is expected to enter a recession.

The Chancellor said that the figures portray the “very challenging economic situation” prevailing worldwide and in the UK. Further adding that before it gets better, it “will get worse”.


The slowdown of economic activity has been observed across all the main sectors of the UK economy over the last three months, which include construction, production, and services.


When a country's economy contracts for two consecutive three-month periods, it's said to be in recession. And it’s widely expected that the UK will be in recession by the end of this year. Per the statement released by The Bank of England, the economy is facing the longest downturn in its recorded history of economic activity.

Companies generally spend less money, and the number of unemployed people rises when a country is in recession. Also, getting their first job becomes harder for school leavers and graduates. So the government receives less money from people through tax, which results in less spending on public services like education and health.

According to the Office for National Statistics(ONS), the UK economy grew by 0.5 percent in October, and the main driver of this growth was the service sector.

FAQs:

1. What’s the current economy of the UK?
   $3.194 trillion GDP.
2. Where is Jeremy Hunt’s constituency?
   South West Surrey.