The UK economy overcame recession last year with 0.6% GDP growth in the first quarter of 2024The Office for National Statistics (ONS) reported on Friday.
UK GDP contracted by 0.1% in the third quarter of last year and by 0.3% in the fourth quarter. Economists consider two consecutive quarters of contraction to represent a technical recession.
The economic recovery in the first quarter of this year was greater than experts expected They estimate growth of 0.4%.
The British central bank, the BoE, was also more pessimistic in its forecast, also at 0.4%.
The BoE, which raised its key interest rate 14 times between December 2021 and last September, kept its guidance rate at 5.25% on Thursday.
But the agency said it was “optimistic” about a decline in inflation, which would allow it to lower interest rates in the coming months and thereby ease the economic burden on households and companies.
Although “things are still difficult for many people”, the UK economy “has turned around”the prime minister congratulated himself on Friday, Rishi Sunak.
“We are confident that growth will continue through the rest of the year, driven by the favorable economic context,” especially falling inflation and rising wages, said Yael Selfin, economist at KPMG.
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