The UK emerged from recession in the first quarter: reasons for the economic recovery

Economy The UK overcame last year’s recession with 0.6% GDP growth in the first quarter of 2024.The Office for National Statistics reported on Friday.

(Read: UK enters recession at the end of 2023.)

British GDP contracted by 0.1% in the third quarter of last year and by 0.3% in the fourth quarter.

Economists consider two consecutive quarters of contraction to represent a technical recession.

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The economic recovery in the first quarter of the year was more pronounced than expected by experts, who expected an advance of 0.4%.

British central bank, The Bank of England was also more pessimistic in its forecast, also recording 0.4%.

The Bank of England, which raised key interest rates 14 times between December 2021 and last September, maintained its guidance interest rate at 5.25% on Thursday.

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But the institution said “Rejoicing” In the face of declining inflation, which will allow it to reduce interest rates in the coming months and thus reduce the economic burden on homes and businesses.

despite of “Things are still difficult for a lot of people.”British economy ‘It’s taken a turn’Prime Minister Rishi Sunak congratulated himself on Friday.

“We are confident that growth will continue for the rest of the year, driven by the favorable economic context.”Especially the decline in inflation and the rise in wages, according to estimates by Yael Selvin, an economist at KPMG.

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France Press agency

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