List of recessions in the United Kingdom
This is a list of (recent) recessions (and depressions) that have affected the economy of the United Kingdom. In the United Kingdom and all other EU member states, a recession is generally defined as two successive quarters of negative economic growth, as measured by the seasonally adjusted quarter-on-quarter figures for real GDP.[1][2]
Name | Dates | Duration | Real GDP reduction | Causes | Other data |
---|---|---|---|---|---|
Post-Napoleonic depression | 1812–21 | ~9 years[3] | Post-war readjustment | ||
1857-8 recession | 1857-8 | ~1 year[4][5] | ~1%[6] | Panic of 1857 (originating in America) as the first global economic crisis, confidence eroded by Palmerston government relaxing the provisions of the Peel Banking Act of 1844 | Comparatively brief contraction of approximately 3.5%[4] nominal GDP? |
1867-9 recession | 1867–9 | ~2 years[4][5] | ~1%[7] | Impact on exports resulting from American recession post-civil war | 1.9%[4] fall in GDP |
Long Depression | 1873-96 | ~20 years | Deflation but no reduction in real GDP | Panic of 1873 | World-wide, but Britain hit worst and longest. Previously known as the "Great Depression". Agricultural deflation hit farmers and their workers, although industrial output continued to grow. |
1919-21 depression | 1919-21 | ~3 years | 10.9% 1919 6.0% 1920 8.1% 1921[8] ~9.5%[9] | The end of World War I | Deflation ~10% in 1921, and ~14% in 1922.[10] |
Great Depression | 1930-1 | ~2 years | 0.7% 1930 5.1% 1931[8] | US Depression. Reducing demand for UK exports, also high interest rate defending the gold standard.[11] | UK came off gold standard Sept 1931. 3-5% deflation pa. UK much less affected than US. Took 16 quarters for GDP to recover to that at start of recession[12] after a 'double dip'. |
1956 recession | Q2-Q3 1956 | ~0.5 years (2 Qtr)[13] | 0.3%[13] | 1956 recession | |
1961 recession | Q3-Q4 1961 | ~0.5 years (2 Qtr)[13] | 0.5%[13] | 1961 recession | |
Mid-1970s recessions | until Q1-1974 | Q3-1973~0.75 years (3 Qtr)[13] | 3.3%[13] | 1973 oil crisis | Overall GDP detraction when comparing Q3-1975 with Q2-1973 was 2.9%.[13] It took 14 quarters for GDP to recover to a level significantly above the pre-recession level in Q2-1973,[10][12] as the economy experienced several single quarterly setbacks along with the double-dip recession in 1975.[14][13] |
Q2-Q3 1975 | ~0.5 years (2 Qtr)[13] | 1.8%[13] | |||
Early 1980s recession | until Q1-1981 | Q1-1980~1.25 years (5 Qtr)[13] | 4.6%[13] | Cause - possibly monetarist government policies to reduce inflation ? See 1979-1983 | Company earnings decline 35%. Unemployment rises 124% from 5.3% of the working population in August 1979 to 11.9% in 1984[16] Took 13 quarters for GDP to recover to that at start of 1980[10] Took 18 quarters for GDP to recover to that at start of recession.[12] |
Early 1990s recession | until Q3-1991 | Q3-1990~1.25 years (5 Qtr)[13] | 2.4%[13] | US savings and loan crisis leading to the Early 1990s recession. | Company earnings decline 25%. Peak budget deficit ~8% of GDP. Unemployment rises 55% from 6.9% of the working population in 1990 to 10.7% in 1993[16] Took 13 quarters for GDP to recover to that at start of recession[10] |
Great Recession | until Q3-2009 | Q2-2008 ~1.5 years (6 Qtr)[17][13] | 7.2%[18][13] | Late 2000s financial crisis | Recession lasted from Q2-2008 until Q3-2009, and was the deepest UK recession since the war.[13] Manufacturing output declined 7% by end 2008, and it affected many sectors including banks and investment firms, with many well known and established businesses having to fold.[19] The unemployment rate rose to 8.1% (2.57m people) in August 2011, the highest level since 1994. There was much speculation of a 'double dip' recession during the 2010s, but this proved not to be the case, and GDP exceeded its pre-recession peak in 2013 Q3.[20] |
See also
- List of recessions in the United States
- List of stock market crashes
- Office for National Statistics
References
- ↑ "Q&A: What is a recession?". BBC News. 8 July 2008.
- ↑ "Glossary of Treasury terms". HM Treasury. Retrieved 25 October 2012.
- ↑ http://www.ukpublicspending.co.uk/spending_chart_1800_1830UKb_12c1li011mcn_
- ↑ 4.0 4.1 4.2 4.3 http://www.ukpublicspending.co.uk/spending_chart_1800_1900UKb_12c1li011mcn_
- ↑ 5.0 5.1 http://books.google.co.uk/books?id=XCJaq77qIRIC&printsec=frontcover&dq=british+imperialism+hopkins&hl=en&sa=X&ei=aP7RUKmHDYnItAa_7oHwBA&ved=0CDMQ6AEwAA#v=snippet&q=boom&f=false
- ↑ http://www.ukpublicspending.co.uk/spending_chart_1856_1859UKk_12c1li011mcn_
- ↑ http://www.ukpublicspending.co.uk/spending_chart_1865_1868UKk_12c1li011mcn_
- ↑ 8.0 8.1 D Smith, Sunday Times (UK) 9 November 2008
- ↑ NIESR graph of 6 UK recessions
- ↑ 10.0 10.1 10.2 10.3 Bank of England February 2009 Quarterly inflation report
- ↑ D Sandbrook. Daily Mail (UK) 8 November 2008
- ↑ 12.0 12.1 12.2 UK economy tracker
- ↑ 13.0 13.1 13.2 13.3 13.4 13.5 13.6 13.7 13.8 13.9 13.10 13.11 13.12 13.13 13.14 13.15 13.16 "Quarterly National Accounts - National accounts aggregates (ABMI Gross Domestic Product: chained volume measures: Seasonally adjusted £m, constant prices)". Office for National Statistics. 20 December 2013.
- ↑ 14.0 14.1 http://www.statistics.gov.uk/elmr/08_10/downloads/ELMR_Aug10_Chamberlin.pdf Output and expenditure in the last three UK recessions. August 2010
- ↑ Fall in GDP of 0.4% heralds longest recession ever
- ↑ 16.0 16.1 "UK unemployment" FT 20 November 2008
- ↑ UK GDP since 1955 January 2010 Interactive graph of 6 recessions
- ↑ Gross domestic product (GDP) during that time is now estimated to have dropped by 7.2% from peak to trough
- ↑ CBI February 2009 Economic forecast
- ↑ "Quarterly National Accounts, Q2 2014". Office for National Statistics. 30 September 2014.
External links
Wikinews has related news: United Kingdom officially enters economic recession |
- Office for National Statistics website
- ONS quarterly GDP growth
- UK National Income, Expenditure and Output
- Latest Bank of England inflation report (PDF sections)
- Bank of England February 2009 Quarterly inflation report - Much data, including (on p20) previous 3 UK recessions.
- "What is the difference between a recession and a depression?" Saul Eslake November 2008
- UK economy tracker BBC News - comparison of UK recessions - updated quarterly