GDP of the UK 1948-2023

The gross domestic product of the United Kingdom in 2023 was 2.53 trillion British pounds, a slight increase when compared to the previous year. The significant drop in GDP between 2019 and 2020 was brought about by the COVID-19 pandemic and subsequent lockdowns, which caused severe damage to many industries, particularly in the service sector upon which the UK economy is heavily reliant. 

UK economy falls into recession in late 2023

Although on an annual basis, the UK economy grew slightly in 2023, the UK entered 2024 in recession following two quarters of negative economic growth at the end of 2023. After a huge 10.4 percent fall in GDP in 2020, economic growth rates were relatively strong during a period of economic recovery, with GDP growing by 8.7 percent in 2021, and 4.3 percent in 2022. This recovery has clearly stalled somewhat in 2023, however, with monthly growth figures indicating that the UK economy has been alternating between contractions and low growth for several months, and as of December 2023, was only slightly larger than it was just before the COVID-19 pandemic. 

How big is the UK economy compared to others?

As of 2022, the UK had the sixth-largest economy in world, behind the United States, China, Japan, Germany, and India. Among European nations, this meant that the UK currently has the second-largest economy in Europe, although the economy of France, Europe's third-largest economy, is of a very similar size. The UK's global economic ranking will likely fall in the coming years, however, with the UK's share of global GDP expected to fall from 2.17 percent in 2024 to 2.06 percent by 2028.