The gross domestic product of the British economy was 2.27 trillion British pounds in 2023 and was the sixth-largest global economy, behind the United States, China, Japan, Germany, and India. With two quarters of negative growth at the end of 2023, the UK economy is currently in recession, and has grown only slightly compared to its pre-pandemic size.  In 2020, UK GDP shrank by a record 10.4 percent due to the economic fallout of the COVID-19 pandemic. In some ways, the UK economy has successfully recovered from the sudden shock of the pandemic.

The UK economy staged an early recovery from a technical recession in the second half of 2023, with real GDP growth expected to be 0.3% in 2024, and to accelerate to 0.9% in 2025. It is expect improving incomes to bolster consumer spending, while investment should also benefit from easing credit conditions.

Government consumption and investment will continue to prop up the economy, before a gradual strengthening of private expenditure due to falling wholesale gas prices and improved global conditions. Headline inflation is projected to slow on the back of declining energy prices and to come down close to target by the end of 2024. Core inflation is set to be more persistent due to strong services inflation, only receding to 3.2% in 2024. Unemployment will rise, reaching 4.5% in 2024.

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