The UK Office for National Statistics reported that the UK economy shrank by 0.3% in the fourth quarter of 2023, marking the second consecutive quarter of negative growth and a technical recession. All three main sectors contracted, with services down 0.2%, production down 1%, and construction down 1.3%. UK Finance Minister Jeremy Hunt said high inflation remains the biggest barrier to growth as it forces interest rate hikes. Analysts said the recession may be shallow and short-lived, with the economy experiencing a muted recovery in 2024.