UK Economy Ekes Out Modest Growth in Final Quarter of 2024
The British economy managed to eke out a quarterly growth of 0.1% in the final quarter of 2024 following a stronger than anticipated performance in December.
The Office for National Statistics said Thursday that the 0.4% expansion in December was a result of a broad-based expansion, with pubs doing particularly well in the run-up to Christmas.
The fourth quarter figures means the economy grew by 0.9% overall in 2024, The Associated Press reported.
The quarterly increase followed no growth in the previous three months and may ease some of the pressure on Treasury chief Rachel Reeves, who critics say has been partly responsible for the economic slowdown since Labour returned to power in July.
Last week, the Bank of England halved its growth forecast for the British economy for 2025 to 0.75% as it cut its main interest rate to 4.5%.
If that turns out to be remotely accurate, it will be hugely disappointing news for the UK's new Labour government, which has made growth its top mission. The party has pledged to boost living standards and generate funds for cash-starved public services. With growth proving elusive, the party's popularity has fallen sharply since its election victory in July.
In recent weeks, Reeves has set out plans to boost longer-term growth, such as backing a third runway at London's Heathrow Airport. She has also pledged to create a Silicon Valley-like technology hub between the two university towns of Oxford and Cambridge, backed the regeneration of the area around Manchester United's Old Trafford soccer stadium, as well as a 'reset' of the UK's post-Brexit economic relations with the European Union.
Reeves said the government will go 'further and faster' to bolster growth in the months and years ahead.
'That is why we are taking on the blockers to get Britain building again, investing in our roads, rail and energy infrastructure, and removing the barriers that get in the way of businesses who want to expand," she said.
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