Image for representational functions solely. Britain’s financial system grew by probably the most in almost three years within the first quarter of 2024, ending the shallow recession it entered within the second half of final yr.
| Photo Credit: AFP
The information will probably be welcome information for Prime Minister Rishi Sunak who mentioned the financial system had “turned a corner”
Britain’s financial system grew by probably the most in almost three years within the first quarter of 2024, ending the shallow recession it entered within the second half of final yr and delivering a lift to Prime Minister Rishi Sunak forward of an election.
The Office for National Statistics mentioned gross home product expanded by 0.6% within the three months to March, the strongest enlargement because the fourth quarter of 2021 when it grew by 1.5%.
A Reuters ballot of economists had pointed to a 0.4% enlargement of gross home product within the January-to-March interval, after GDP shrank by 0.3% within the remaining quarter of 2023.
May tenth’s information will probably be welcome information for Mr. Sunak who mentioned the financial system had “turned a corner”, though the opposition Labour Party, which has a big lead in opinion polls, has accused Mr. Sunak and Finance Minister Jeremy Hunt of being out of contact to suppose voters are feeling higher off.
“There is no doubt it has been a difficult few years, but today’s growth figures are proof that the economy is returning to full health for the first time since the pandemic,” Mr. Hunt mentioned.
The Bank of England, which held rates of interest at a 16-year excessive on May 9, forecast quarterly growth of 0.4% for the primary quarter of this yr and a smaller 0.2% rise for the second quarter.
Sterling strengthened in opposition to the U.S. greenback instantly after the figures have been launched.
On a month-to-month foundation, the financial system grew by 0.4 % in March, quicker than the 0.1% growth forecast by economists in a Reuters ballot.
Britain stays one of many slowest international locations to recuperate from the consequences of the coronavirus pandemic.
At the top of the primary quarter of 2024, the nation’s financial system was simply 1.7% larger than its degree in late 2019, earlier than the pandemic, with solely Germany among the many G7 faring worse.
