UK economy grows for first time in three months

Business / Thu 16th Jan 2025 at 09:59am

THE UK economy grew for the first time in three months, driven in part by a boost in trade for pubs, restaurants and the construction industry reports the BBC.

Official figures showed an expansion of 0.1% after the economy shrank in each of the two previous months.

The return to growth will be a welcome sign for the government after recent turbulence in financial markets sent its borrowing costs to the highest level for several years and the value of the pound fell.

https://www.bbc.co.uk/news/articles/c8r5jkv5g5po

4 Comments for UK economy grows for first time in three months:

adam

2025-01-16 12:10:54

Now do GDP per captia

Christine Vincenzo

2025-01-16 18:42:57

This truly is excellent news and credit to Rachel Reeves and her excellent management of the economy, No doubt over the next few months we will really see GDP take off, especially with the investment from China that our Local MP has said will bring prosperity to his constituents in Harlow. It is amazing what we can achieve when we tighten our belts and make the difficult decisions that really do need to be made at a national level for the good of all of the people of the UK

Peter

2025-01-16 21:27:52

Remove the tax free allowance for interest ie tax all interest, that will encourage expenditure rather than saving

David Forman

2025-01-16 23:48:36

This one-off miniscule increase in growth is in no way due to Rachel Reeves. The very big increase in borrowing costs, at one point the highest since 1998, but now higher than when Liz Truss screwed up is going to apply downward pressure on the economy, along with NI increases for employers yet to fully unwind their effects. With screwing down the benefits system it is likely to exacerbate the numbers of long-term sick and place further pressure on the NHS. The only light at the end of the tunnel is a focus on productivity in the public and private sectors. Artificial Intelligence may help, but a sustained improvement in management training, motivational management, investment in technology and application of performance management of shopfloor workers is essential to boost productivity. The public sector has had money thrown at, but its underlying weaknesses of poor productivity, technology applied on a piecemeal basis and poor management training must change. I wait to see if our Labour government uses the crisis in public services to make those changes, but I see evidence emerging that the false remedy of privatisation will be used instead. Time is running out for Labour to make the necessary changes to present a better economy to the electorate in 2029.