The UK’s gross domestic product (GDP) fell by an estimated 0.3% in the fourth quarter of 2023, the second consecutive quarterly decline, according to the Office for National Statistics.
Overall, the 2023 GDP increased by an estimated 0.1% compared with 2022.
There were decreases in the three main sectors of the economy, with declines of 0.2% in services, 1% in production, and 1.3% in construction output.
Andrew Harding, FCMA, CGMA, chief executive–Management Accounting at AICPA & CIMA, together as the Association of International Certified Professional Accountants, said in a statement that the numbers provide “further evidence of the UK’s economic stagnation”.
“The most telling statistic is that GDP per capita — that is to say our actual standard of living — shrank 0.7% in 2023,” Harding said in the statement. “It has not grown since the beginning of 2022, which is the longest run of falls or stagnation since 1955. Unless we are happy to continue to grow poorer, we need to take action now to arrest the decline.
“There is ultimately only one way to deal with this, and that is to focus our energy on productivity growth. While there is no quick fix, there are policies the government could adopt to boost productivity, and AICPA & CIMA have made some proposals in our submission to the Treasury ahead of next month’s budget which would make a real difference. These focus on the need to reskill and upskill the workforce, increase investment in SMEs, and make sure tax policy is aligned with the goal of generating growth. Achieving success will require long-term, cross-party commitment, and I sincerely hope today’s figures are the wake-up call we need to finally start tackling the most pressing economic issue of our time.”
— To comment on this article or to suggest an idea for another article, contact Kevin Brewer at Kevin.Brewer@aicpa-cima.com.
