UK Economy Exits Recession with 0.6% Growth in Early 2024
UK: The UK economy emerged from recession with a stronger-than-expected 0.6% growth in the first quarter of 2024, according to the Office for National Statistics (ONS). This marks the strongest quarterly growth since Q4 2021, driven by broad-based strength across the service industries and production sectors, which grew by 0.7% and 0.8%, respectively. Car manufacturers and the human health and social services sectors performed particularly well. However, the construction sector continued to struggle, with a 0.4% decline in March.
Ben Jones, lead economist at the CBI, said the data suggests the UK is "now on the road to recovery," with the potential for a consumer-led recovery as inflation falls. However, George Dibb of IPPR cautioned that it is "too early to say that the British economy has turned a corner," emphasizing the need for sustained growth. Chancellor Jeremy Hunt hailed the growth figures as proof that the economy is “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," while Labor's shadow chancellor Rachel Reeves criticized the government for celebrating amidst ongoing economic challenges.
Source: YAHOO News