UK no longer in recession

May 10, 2024

The UK's economy has outperformed expectations with a 0.6% growth in GDP between January and March, according to the Office for National Statistics (ONS).

This performance, surpassing the anticipated 0.4% increase, marks a turnaround from previous contractions and signals that the UK is no longer in recession.

Prime Minister Rishi Sunak hailed this as evidence of economic recovery, although opposition parties remain cautious in their optimism.

The positive figures follow a period of decline where GDP fell by 0.3% between October and December, after a 0.1% drop from July to September. Analysts attributed these downturns to high inflation and energy costs curtailing consumer spending, with adverse weather further deterring shopping activity.

March itself saw a significant boost, with GDP rising by 0.4%, considerably above the forecasted 0.1%. Additionally, February's growth was revised from 0.1% to 0.2%. These improvements suggest a resilience in the UK economy, contrasting with longer-lasting past recessions like those of 2008 and 2009.

The latest economic data follows the Bank of England's decision to maintain interest rates at 5.25%. The Bank said it anticipates more robust economic growth for the year ahead, alongside lower unemployment and inflation than previously forecast.

Talk to us about your finances.