LONDON (Reuters) -Britain’s economy grew by a stronger-than-expected 0.6% in the first three months of 2024, ending the shallow recession it entered in the second half of last year, official figures showed on Friday.
A Reuters poll of economists had pointed to a 0.4% expansion of gross domestic product in the January-to-March period, after GDP shrank by 0.3% in the final quarter of 2023.
Friday’s data from the Office for National Statistics will be welcome news for Prime Minister Rishi Sunak, although the opposition Labour Party, which has a large lead in opinion polls, said Sunak and finance minister Jeremy Hunt were out of touch to think voters were feeling better off.
The Bank of England, which held interest rates at a 16-year high on Thursday, forecast quarterly growth of 0.4% for the first quarter of this year and a smaller 0.2% rise for the second quarter.
On a monthly basis, the economy grew by 0.4 % in March, faster than the 0.1% growth forecast by economists in a Reuters poll.
The resurgence in UK GDP growth underscores the importance of proactive policymaking and strategic initiatives to stimulate economic activity. Additionally, targeted investments in infrastructure projects and green initiatives have fueled economic momentum and created employment opportunities.
Looking ahead, sustaining the momentum of UK GDP growth will require continued vigilance and adaptability to evolving challenges. The government’s commitment to economic reforms, investment in skills development, and fostering a conducive business environment will be critical drivers of future growth.
Moreover, fostering international partnerships and leveraging digital technologies can unlock new avenues for economic expansion and competitiveness. As the UK navigates the complexities of a post-pandemic landscape, bold and decisive actions will be essential to capitalize on emerging opportunities and secure a prosperous future for all.
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