List of recessions in the United Kingdom
Encyclopedia
This is a list of recession
s (and depression
s) that have affected the economy of the United Kingdom
.
Recession
In economics, a recession is a business cycle contraction, a general slowdown in economic activity. During recessions, many macroeconomic indicators vary in a similar way...
s (and depression
Depression (economics)
In economics, a depression is a sustained, long-term downturn in economic activity in one or more economies. It is a more severe downturn than a recession, which is seen by some economists as part of the modern business cycle....
s) that have affected the economy of the United Kingdom
Economy of the United Kingdom
The economy of the United Kingdom is the sixth-largest national economy in the world measured by nominal GDP and seventh-largest measured by purchasing power parity , and the third-largest in Europe measured by nominal GDP and second-largest measured by PPP...
.
| Name | Dates | Duration | GDP reduction | Causes | Other data |
|---|---|---|---|---|---|
| Earlier recessions | pre-1919 | (To be added) | |||
| 1919-21 depression | 1919-21 | ~3 years | 10.9% 1919 6.0% 1920 8.1% 1921 |
The end of World War I World War I World War I , which was predominantly called the World War or the Great War from its occurrence until 1939, and the First World War or World War I thereafter, was a major war centred in Europe that began on 28 July 1914 and lasted until 11 November 1918... |
Deflation ~10% in 1921, and ~14% in 1922. |
| Great Depression Great Depression in the United Kingdom The Great Depression in the United Kingdom, also known as the Great Slump, was a period of national economic downturn in the 1930s, which had its origins in the global Great Depression... |
1930-1 | ~2years | 0.7% 1930 5.1% 1931 |
US Depression Great Depression The Great Depression was a severe worldwide economic depression in the decade preceding World War II. The timing of the Great Depression varied across nations, but in most countries it started in about 1929 and lasted until the late 1930s or early 1940s... . Reducing demand for UK exports, also high interest rate defending the gold standard Gold standard The gold standard is a monetary system in which the standard economic unit of account is a fixed mass of gold. There are distinct kinds of gold standard... . |
UK came off gold standard Gold standard The gold standard is a monetary system in which the standard economic unit of account is a fixed mass of gold. There are distinct kinds of 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 after a 'double dip'. |
| Mid 1970s recession 1973–75 recession The 1973–75 recession in the United States or 1970s recession was a period of economic stagnation in much of the Western world during the 1970s, putting an end to the general post-World War II economic boom. It differed from many previous recessions as being a stagflation, where high unemployment... |
1973-5 | 2 years (6 out of 9 Qtr) |
3.9% 3.37% | 1973 oil crisis 1973 oil crisis The 1973 oil crisis started in October 1973, when the members of Organization of Arab Petroleum Exporting Countries or the OAPEC proclaimed an oil embargo. This was "in response to the U.S. decision to re-supply the Israeli military" during the Yom Kippur war. It lasted until March 1974. With the... |
Took 14 quarters for GDP to recover to that at start of recession after a 'double dip'. |
| Early 1980s recession Early 1980s recession The early 1980s recession describes the severe global economic recession affecting much of the developed world in the late 1970s and early 1980s. The United States and Japan exited recession relatively early, but high unemployment would continue to affect other OECD nations through at least 1985... |
1980-2 | ~2 years (6 - 7 Qtr) |
5.8% 5.9% |
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 Aug 1979 to 11.9% in 1984 Took 13 quarters for GDP to recover to that at start of 1980 Took 18 quarters for GDP to recover to that at start of recession. |
| Early 1990s recession | 1990-2 | ~2 years (5 Qtr) |
2.5% | US savings and loan crisis Savings and Loan crisis The savings and loan crisis of the 1980s and 1990s was the failure of about 747 out of the 3,234 savings and loan associations in the United States... 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 Took 13 quarters for GDP to recover to that at start of recession |
| Late-2000s recession | 2008-9 | ~1.5 years (6 Qtr) |
6.0% 6.03% 6.4% 7.1% |
Late-2000s financial crisis Late-2000s financial crisis The late-2000s financial crisis is considered by many economists to be the worst financial crisis since the Great Depression of the 1930s... |
Manufacturing output down 7% by end 2008. It was the deepest recession since the war. It has affected many sectors including banks and investment firms, and seen many well known and established businesses fold. Britain has notably struggled to come out of the latest recession, with much speculation of a 'double dip' recession during the 2010s. Output fell 0.5% in 2010 Q4. The unemployment rate rose to 8.1% (2.57m people) in August 2011, the highest level since 1994. , after 14 quarters, GDP is still 4% down from peak at start of recession. |
External links
- UK National Income, Expenditure and Output
- Latest Bank of England inflation report (PDF sections)
- Bank of England Feb 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 Nov 2008
- UK economy tracker BBC News - comparison of UK recessions - updated quarterly