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.
|Name||Dates||Duration||Real GDP reduction||Causes||Other data|
|Post-Napoleonic depression||1812–21||~9 years||Post-war readjustment|
|1857-8 recession||1857-8||~1 year||~1%||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% nominal GDP?|
|1867-9 recession||1867–9||~2 years||~1%||Impact on exports resulting from American recession post-civil war||1.9% 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||
|The end of World War I||Deflation ~10% in 1921, and ~14% in 1922.|
|Great Depression||1930-1||~2 years||
|US Depression. Reducing demand for UK exports, also high interest rate defending the gold standard.||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 after a 'double dip'.|
|1956 recession||Q2-Q3 1956||
|1961 recession||Q3-Q4 1961||
|3.3%||1973 oil crisis||Overall GDP detraction when comparing Q3-1975 with Q2-1973 was 2.9%. It took 14 quarters for GDP to recover to a level significantly above the pre-recession level in Q2-1973, as the economy experienced several single quarterly setbacks along with the double-dip recession in 1975.|
|Early 1980s recession||
||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 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||
|2.4%||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 Took 13 quarters for GDP to recover to that at start of recession|
|Late 2000s recession||
|7.2%||Late 2000s financial crisis||Recession lasted from Q2-2008 until Q3-2009, and was the deepest UK recession since the war. 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. 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.|
- "Q&A: What is a recession?". BBC News. 8 July 2008.
- "Glossary of Treasury terms".
- D Smith, Sunday Times (UK) 9 November 2008
- NIESR graph of 6 UK recessions
- Bank of England February 2009 Quarterly inflation report
- D Sandbrook. Daily Mail (UK) 8 November 2008
- UK economy tracker
- "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.
- 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
- "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 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