The UK is now in recession, Jeremy Hunt has announced, based on the Office for Budget Responsibility forecasts.
The watchdog says GDP is to grow by 4.2% this year then falls 1.4% in 2023, before rising again by 1.3%, 2.6% and 2.7% in the following three years.
It says inflation is forecast to be 9.1% this year and 7.4% next year, before falling sharply from the middle of next year.
Mr Hunt said: "They confirm that our actions today help inflation to fall sharply from the middle of next year.
"They also judge that the UK, like other countries, is now in recession."
It came as the Chancellor unveiled the Autumn Statement - just eight weeks after former PM Liz Truss's disastrous mini-Budget that caused economic turmoil.
During his statement, Mr Hunt vowed to "tackle the cost-of-living crisis" and "rebuild our economy" as he set out plans for tax rises and spending cuts.
He also announced two new fiscal rules, telling the Commons: "The first is that underlying debt must fall as a percentage of GDP by the fifth year of a rolling five-year period.
"The second, that public sector borrowing, over the same period, must be below 3% of GDP."
The Chancellor went on: "The plan I'm announcing today meets both rules. Today's statement delivers a consolidation of £55 billion and means inflation and interest rates end up significantly lower.
"We achieve this in a balanced way: in the short term, as growth slows and unemployment rises, we will use fiscal policy to support the economy."
He said the OBR confirms "that because of our plans, the recession is shallower, and inflation is reduced", adding: "Unemployment is also lower with about 70,000 jobs protected as a result of our decisions today".
