The UK economy is the only G7 country still not fully recovered since the pandemic.

According to data from the UK Statistics Office, the economy contracted by 0.2 percent in the third quarter. Economists surveyed by Bloomberg had predicted a 0.5 percent contraction. During this period, consumer spending and corporate investments decreased.

The economy has not yet entered a technical recession, as the data for the second quarter has been revised from 0.1 percent contraction to 0.2 percent growth.

In September, the economy contracted by 0.6 percent due to the announcement of a public holiday due to the funeral of Queen Elizabeth.

The Bank of England, which has increased interest rates eight times since December, stated that a recession was inevitable to control inflation, which reached double digits. According to one scenario, the bank, the recession could last until the middle of 2024.

New Prime Minister Rishi Sunak is expected to raise tens of billions of pounds in taxes next week to close the public finance gap and restore credibility after former Prime Minister Lis Truss’ proposal for tax cuts swept markets.