Chancellor Jeremy Hunt has responded to news the UK has officially slipped into recession, saying there are “signs the British economy is turning a corner”. Britain fell into a recession at the end of last year, official figures have shown, with the UK’s gross domestic product dropping to 0.3 per cent.
Mr Hunt said: "We expected growth to be weaker while tackling high inflation."
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Mr Hunt said: "We expected growth to be weaker while tackling high inflation."
Report by Kennedyl. Like us on Facebook at http://www.facebook.com/itn and follow us on Twitter at http://twitter.com/itn
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NewsTranscript
00:00 We always expected growth to be weaker while we prioritised tackling inflation, that means higher interest rates.
00:07 And that's the right thing to do because you can't have long term healthy growth with high inflation,
00:12 but also for families when there's a cost of living crisis, when the cost of their weekly shop is going up,
00:18 their energy bills are much higher, it's the right thing to do.
00:22 The underlying picture here is an economy that is more resilient than most people predicted.
00:28 Inflation is coming down, real wages have been going up now for six months.
00:33 And if we stick to our guns, independent forecasters say that by the early summer we could start to see interest rates falling
00:41 and that will be a very important relief for families with mortgages.