(Reuters) – Britain’s GDP grew at its fastest pace in almost three years in the first quarter of 2024, lifting the economy out of recession, according to the first Office for National Statistics (ONS) estimate released Friday.
The British economy grew by 0.6% in the first quarter sequentially, after -0.3% in the previous quarter and against a consensus of 0.4%.
Over one year, gross domestic product (GDP) increased by 0.2% in the first quarter, against stable activity expected by the consensus and after a decline of 0.2% in the fourth quarter.
In March, GDP rose by 0.4% after an increase of 0.2% (revised) the previous month, while economists polled by Reuters forecast an increase of 0.1% on average.
Over one year, the British economy grew by 0.7% in March, against a consensus of 0.3% and after stability (revised from -0.2%) the previous month.
“Despite a more encouraging near-term outlook, the rebound in growth is likely to be limited by continued weakness in productivity as well as fewer employment opportunities,” said Yael Selfin, chief economist at KPMG UK.
GDP per capita increased for the first time in two years in the first quarter, by 0.4%, but was 0.7% lower than the previous year.
“In terms of per capita income, it can be said that British households have hardly seen any significant improvement in their standard of living over the last two years,” notes Gora Suri, economist at PwC.
INFLECTION POINT
British Prime Minister Rishi Sunak welcomed Friday’s data, saying the economy had “turned the page”.
“There is no doubt that recent years have been difficult, but today’s growth figures prove that the economy has returned to health for the first time since the pandemic,” said Finance Minister Jeremy Hunt.
The Labor opposition, which has a comfortable lead in the polls for the next election, has accused the government of being out of touch with reality.
“This is not the time for Conservative ministers to be self-congratulatory and tell the British people that they have never been better off,” said Labor candidate Rachel Reeves, who hopes to succeed Jeremy Hunt as Finance Minister
(Written by Corentin Chappron, edited by Kate Entringer)
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