Chancellor of the Exchequer Jeremy Hunt delivered his Autumn Budget today in the House of Commons.
Alongside a flurry of economic policies, one key admittance stood out in his speech, that Britain is now officially in a recession. The Office for Budget Responsibility (OBR) largely attributed the economic downturn to increasing energy prices and Russia's invasion of Ukraine.
The OBR noted that the economy is still forecast to grow by 4.2 per cent but warned that it could shrink by 1.4 per cent next year. After this, it predicts that sit could rise by 1.3 per cent, 2.6 per cent, and 2.7 per cent in the consecutive three years.
Read more: 11 key announcements from Jeremy Hunt's Autumn statement including new cost of living payments
Speaking to MPs in the Commons, Mr Hunt said: "The Office for Budget Responsibility confirms global factors are the primary cause of current inflation. Most countries are still dealing with the fallout from a once-in-a-century pandemic."
He later added that the OBR confirmed: "because of our plans, the recession is shallower, and inflation is reduced." However, it is not yet clear just how much the recession will be reduced by the government's economic plans.
With the confirmation that Britain is suffering a recession once again, many will likely be wondering just how long they will have to bear with it.
How long will the recession last?
The OBR currently predicts that the recession will last for just over one year, with GDP expected to fall by around 2 per cent. Compared to other recessions the country has experienced in the 21st century, this is relatively shallow and is much short than the Bank of England's previous warning.
The BoE previously warned that Britain could see its longest recession in 100 years, lasting until the middle of 2024. Despite the OBR's more optimistic prediction, it still means that the British economy will not recover to its pre-pandemic levels until at least 2024.
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