The British economy contracted by 0.2% in the fourth quarter of 2023, marking its first period of contraction since the 2020-21 recession primarily driven by high inflation, soaring borrowing costs and weak external demand. Domestic consumption grew by 0.3% (vs. 0.2% in Q3), bolstered by a notable 2.8% surge in business investment. The economy accelerated to 2.5% in 2022, the weakest annual growth since the 2009 financial crisis, excluding the pandemic year of 2020.