THE UK could be heading towards a recession after latest figures showed the economy shrank 0.2 per cent between July and September.
Soaring prices have hit businesses and households in recent months causing pressure on people’s pockets.
A recession has been widely expected in the UK due to the prices of goods such as food, fuel and energy soaring, which is down to several factors, including the war in Ukraine.
Higher prices for goods has led to many households facing hardship and cutting back on spending, which has started to drag on the economy.
What is a recession?
When a country is in recession, it’s a sign that its economy is doing badly.
During recessions, companies typically make less money and the number of people unemployed rises. Graduates and school leavers also find it harder to get their first job.
This means the government receives less money in tax to use on public services such as health and education.
A country is in recession when its economy shrinks for two three-month periods in a row.
