When was the UK’s last recession – and how long did it last?

The last time Britain was in recession was during the height of the Covid-19 pandemic

Fears are growing that the UK will enter a recession in 2022.

In May, the Bank of England announced that UK interest rates had risen to 9%, the highest level in 40 years.

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The cost of living crisis has left households feeling the strain as they try to keep up with rising energy and fuel costs.

The UK economy has grown at its slowest pace in a year, with gross domestic product (GDP) falling every month since February 2022.

With the interest rate expected to rise above 10% by the end of 2022, there are concerns that a UK recession is just around the corner.

Here’s everything you need to know about the UK’s latest recession.

When was the last recession?

The last time Britain went into recession was at the height of the Covid-19 pandemic in August 2020.

As people isolated and stayed at home, many businesses closed and people lost their jobs.

Lehman Brothers employees exit their London offices, 2008 (Photo: Getty Images)

This caused GDP, which measures the size of a country’s economy, to fall by 20.4%.

The best-known and longest-lasting recession to hit Britain was the “Great Recession” of 2008.

This was caused by rising energy prices and the collapse of the housing market.

It lasted five financial quarters and was the longest recession since World War II.

The 2008 recession was global, affecting all G7 countries.

Big names went bankrupt overnight, from Lehman Brothers to the Royal Bank of Scotland, which had to be bailed out by the British government.

The unemployment rate in Great Britain rose significantly to 10%.

What is a recession?

A recession occurs when a country’s economy goes into decline.

It took the UK economy five years to recover from the 2008 recession (Image: Matt Cardy/Getty Images)

The UK’s wealth is measured by its GDP, when this starts to decline the economy will contract meaning people will find their money doesn’t stretch as far as it used to.

A recession occurs when a country’s GDP falls for two consecutive financial quarters (six months).

How long did it take to recover?

The 2008 recession had a lasting impact on the economy and employment.

The employment rate did not fully recover to pre-recession levels until 2015.

By the end of 2011, almost 2.7 million people lost their jobs.

The recession-induced unemployment rate was the highest since 1995.

The unemployment rate in the last recession rose to 10% (Image: Tolga Akmen / AFP via Getty Images)

The UK economy took five years to recover, with GDP contracting by more than 6% between 2008 and 2009.

Earnings have still not officially recovered since the recession as the 2011 public sector wage freeze and 2013 wage cap impacted workers’ wages.

What do high interest rates mean?

High interest rates mean consumers end up paying more for essentials than they used to.

A recession is more likely when inflation rates are high because people don’t have money to spend on things other than their homes.

On May 18, the Bank of England announced that interest rates had risen to 9%, the highest level in 40 years.

They have predicted that rate will rise to 10% by the end of 2022, which could have a major impact on the UK economy.

https://www.nationalworld.com/lifestyle/money/when-was-the-last-recession-uk-how-long-what-does-mean-recover-3700204 When was the UK’s last recession – and how long did it last?

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