Official figures released on Friday revealed that Britain emerged from recession with stronger-than-expected growth in the first quarter of 2024, giving embattled Prime Minister Rishi Sunak a boost ahead of this year’s election.
The Office for National Statistics (ONS) reported in a statement that the gross domestic product grew by 0.6 percent in the first three months of this year, exceeding market predictions of 0.4 percent.
Due to high inflation and a crisis in the cost of living, the economy shrank in two consecutive quarters in the second half of last year, fitting the precise definition of a recession.
Prioritizing economic growth is a primary concern for Sunak, whose ruling Conservatives are currently behind the main opposition Labour Party in the run-up to the general election.
“There is no doubt it has been a difficult few years, but today’s growth figures are proof that the economy is returning to full health for the first time since the pandemic,” said finance minister Jeremy Hunt.
“We’re growing this year and have the best outlook among European G7 countries over the next six years,” he added.
Friday’s bright news came one day after the Bank of England kept its main interest rate at a 16-year high, but hinted at a cut over the summer as UK inflation cools further — and forecast emergence from recession.
“After two quarters of contraction, the UK economy returned to positive growth in the first three months of this year,” said ONS director of economic statistics Liz McKeown.
“There was broad-based strength across the service industries with retail, public transport and haulage, and health all performing well.
“Car manufacturers also had a good quarter. These were only a little offset by another weak quarter for construction.”
Following a 0.1 percent contraction in the previous three months, the GDP shrank by 0.3 percent in the fourth quarter of 2023.
