The UK economy has shown signs of recovery, with a growth rate of 0.6% in the first quarter of the year, according to the Office for National Statistics. This was faster than predicted by economists who had forecasted a 0.4% improvement.
After two consecutive quarters of decline, which technically placed the country in a recession in the latter half of 2023, this positive growth is a welcome relief for many. Chancellor Jeremy Hunt responded to the GDP figures by stating that the economy is showing signs of returning to full health for the first time since the pandemic hit. He highlighted several positive factors that are driving this growth, including faster wage growth compared to inflation, falling energy prices, and tax cuts benefitting the average worker by £900.
Liz McKeown, director of economic statistics at ONS, noted that this positive growth was driven primarily by strong performance in service industries such as retail, public transport, haulage and health sectors. However, there was some offset from weak performance in construction and car manufacturers also contributed positively to overall growth.
While it’s still early days and there is much work left to do before we can say for certain whether or not we’ve turned a corner in our economy, these figures are certainly encouraging news for those hoping for a brighter future for Britain.