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The UK emerged from recession in the first quarter

The UK emerged from recession in the first quarter

The British economy recorded a growth of 0.6% of GDP in the first quarter of 2024. After two negative quarters, this data reversed the trend.

The UK economy overcame last year’s recession with a growth of 0.6% of GDP in the first quarter of this 2024the Office for National Statistics (ONS) reported on Friday.

British GDP had contracted by 0.1% in the third quarter of last year and by 0.3% in the fourth quarter. Economists consider that two consecutive quarters of contraction represent a technical recession.

The rebound in the economy in the first quarter of the year is more marked than expected by experts, who They predicted a progression of 0.4%.

The British central bank, the BoE, was also more pessimistic in its forecasts, also at 0.4%.

The BoE, which raised its main rates 14 times between December 2021 and last September, maintained its guideline rate at 5.25% on Thursday.

But the institution said it was “optimistic” about a decline in inflation, which will allow it to lower its interest rates in the coming months and thus lighten the economic burden on households and companies.

Although “things are still difficult for many people”, the British economy “has turned around”the prime minister congratulated himself on Friday, Rishi Sunak.

“We are confident that growth will continue for the rest of the year, driven by a favorable economic context,” especially the decline in inflation and rising wages, said Yael Selfin, an economist at KPMG.

Source: Ambito

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