The UK's economy has grown

The UK entered a recession in the later months of 2023 as the UK saw a decline in GDP of 0.5% and people across the country felt the effects of rising prices and interest rates.

This was the UK’s third recession in 16 years.

Today, the 10th May 2024, official figures from the ONS reveal the UK has exited this recession with a GDP growth of 0.6% in the months of January to March. This has been the fastest growth the UK has seen in two years and surpassed economists’ expectations.

The BBC reports that this is the strongest growth of any European G7 country.

 

Which sectors have helped the growth

There has been an increase in activity across the services sector since the rise in wages has outstripped inflation and eased financial pressures on consumers.

The ONS director, Liz McKeown has documented that there has been a broad strengthening across the service industries as retail, public transport, car manufacturers and health all performing well.

 

Does this mean prices will fall?

Prices will not fall immediately but inflation is rising slower meaning items are getting more expensive at a slower rate.

The bank of England has kept the rates at 5.25% however, they indicated at a possible cut in the summer months.