London (Reuters) – The British economy increased by 0.1% during the fourth quarter of 2024, according to official data published Thursday.

The economists interviewed by Reuters had provided that the British gross domestic product (GDP) would decrease by 0.1% in the fourth quarter.

GDP increased by 0.4% in December compared to November, which is significantly higher than 0.1% forecast and is explained by higher than expected growth of 0.4% in the large sector of services .

However, corrected for the increase in the population, national production per capita fell 0.1% over the quarter, highlighting continuous pressure on living standards and public finances.

For the entire year 2024, total GDP increased by 0.9%.

Last week, the Bank of England (BOE) half reduced its growth forecasts for 2025, bringing them to 0.75%, although other forecasters, such as the National Institute for Economic and Social Research, remain more optimistic with a growth forecast of 1.5%.

The British economy recorded moderate growth in the first half of 2024, while it came out of a slight recession in the second half of 2023, but it slowed down in the second half, recording zero growth in the third quarter of the year.

Companies complained about increasing labor cost with the first budget of the new Labor government on October 30 and said they planned to reduce their staff and increase their prices in response to this measure.

The Chancellor of the Echiquier, Rachel Reeves, and the Prime Minister, Keir Starmer, announced measures aimed at reducing the deadlines for obtaining building permits and other regulatory obstacles in order to strengthen confidence.

(Written by David Millike and Andy Bruce, Bertrand de Meyer, edited by Augustin Turpin)

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