Recession looms as UK economy starts to shrink

The UK is heading into recession as the economy starts to shrink. Official figures showed the economy shrank between July and September. 

The economy contracted by 0.2 per cent during the three months as soaring prices hit businesses and households. 

A country goes into recession when its economy shrinks for two three-month periods in a row. The UK is expected to be in one by the end of the year. 

The Bank of England has warned of a “very challenging” two year recession for the country. 

It comes as no surprise, as prices of food, fuel and energy soar. 

Higher prices has led to households cutting back on spending, which has impacted the economy. 

When a country is in recession, it’s a sign the economy is doing badly.