How did the 2008 recession start UK?

The great recession refers to the economic downturn between 2008 and 2013. The recession began after the 2007/08 global credit crunch and led to a prolonged period of low/negative growth, rising unemployment and a period of fiscal austerity. This shows the sharp fall in real GDP in the UK economy in 2008 and 2009.

When did the 2008 recession start?

December 2007 – June 2009
Great Recession/Time period

What caused the 2008 financial crisis in UK?

This was caused by rising energy prices on global markets, leading to an increase in the rate of global inflation. “This development squeezed borrowers, many of whom struggled to repay mortgages. Property prices now started to fall, leading to a collapse in the values of the assets held by many financial institutions.

When did the UK economy go into recession?

Two or more consecutive quarters of falling gross domestic product (GDP) is commonly called a recession. Having shrunk by more than 6% between the first quarter of 2008 and the second quarter of 2009, the UK economy took five years to get back to the size it was before the recession.

Who is to blame for the UK recession?

But shadow chancellor Anneliese Dodds blamed Prime Minister Boris Johnson for the scale of the economic decline, saying: “A downturn was inevitable after lockdown – but Johnson’s jobs crisis wasn’t.” How are ordinary people being affected?

When did the UK economy start to get smaller?

Since 1992, the size of the UK economy, measured by adding up the value of all the goods and services produced in the country, had been getting bigger every quarter. But in April to June 2008, it began to fall. The economy kept getting smaller for five successive quarters.

What was the interest rate at the start of the recession?

Interest rates were stubbornly high initially but declined from a high of 14.8% at the start of the recession to a low of 5.9% by the end of the recession, though interest rates were hiked twice during Black Wednesday .