The cost of a recession | Is financial education an inexpensive way to support your staff?

After months and months of uncertainty about what the UK’s economic future holds, figures finally suggest that we are officially in a recession.

A recession can be defined as at least two consecutive quarters of economic contraction in gross domestic product (GDP). GDP is the value of goods and services – such as milk or the cost of a holiday – in a given period.

The Office for National Statistics (ONS) recently revealed that GDP shrank by 0.3 percent between October and December 2023 following a decline of 0.1 percent between July and September 2023, suggesting the economy technically fell into a recession towards the end of last year.

Despite this, the Bank of England (BoE)’s governor, Andrew Bailey, described the economy as showing “distinct signs of an upturn” and hinted that the recession might already be over. This upturn is, of course, very good news. However, these rapid changes in the economy highlight the growing need for employers to prioritise the financial wellbeing of their employees, and fast.