The United Kingdom’s economy has entered a recession as its gross domestic product (GDP) fell by 0.3% in December 2023.

According to the UK’s Office For National Statistics (ONS), the fall in GDP was due to a decline in all main sectors of the economy.

This is the “mildest recession” witnessed in 50 years — unlike the huge drop of over 1 percent sometimes seen, according to BBC. The ONS said the real GDP fell 0.3% in the fourth quarter (Q4) of 2023.

The agency said hard-pressed households cut back on spending in response to soaring interest rates and rising living costs. The UK GDP was estimated to have increased by 0.1 percent for the full year in 2023, following a growth of 4.3 % in 2022.

According to ONS, this is the weakest annual change in real GDP since the financial crisis in 2009, excluding the year 2020, which was affected by the coronavirus (COVID-19) pandemic.