Britain’s economy grew 0.6% in the April-June period, a slight slowdown compared with the first three months of the year, official data showed on Thursday.
The country’s economy is growing after emerging from a mild recession late last year, helped by inflation falling from four-decade highs.
Gross domestic product grew by 0.7% in the first quarter of 2024, the Office for National Statistics said in a statement.
The figures cover the period just before Britain’s general election in early July, which saw the centre-left Labor Party win power on a promise to significantly grow the country’s economy.
“The new government is under no illusions about the scale of the challenge we inherited after more than a decade of low economic growth and a £22bn ($28bn) black hole in the public finances,” Finance Minister Rachel Reeves said on Thursday. in reaction to the latest gross domestic product figures.
China’s underwhelming data dampens hopes for an economic recovery
“That’s why we’ve made economic growth our national mission and we’re taking the hard decisions now to build the foundations so we can rebuild Britain and improve every part of the country.”
Weak June
The GDP data also revealed that the economy recorded zero growth in June, or the end of the second quarter, due to a “weak month for health, retail and wholesale, offset by broad-based growth in manufacturing,” noted Liz McKeown in the statistical office.
It added that growth throughout the quarter was “led by the services sector, where scientific research, the IT industry and legal services did well”.
While the Consumer Price Index rose again above the Bank of England’s July target of 2.2%, official data showed on Wednesday, it is well below the elevated levels seen in the months following Russia’s invasion of Ukraine.
Asian shares follow Wall Street’s rise
As such, the central bank is expected to continue cutting interest rates in the coming months, according to analysts.
Separate figures this week showed Britain’s unemployment rate fell to 4.2% and wage growth the lowest in almost two years.
Prime Minister Keir Starmer’s Labor government has said it plans to boost the economy with massive housebuilding and by doubling onshore wind power by 2030.
At the same time, Reeves warned that the country’s public finances face an additional £22bn hole inherited from the previous Conservative government which is likely to lead to tax rises when it delivers its maiden budget later this year.
Source: AFP