UK GDP rises 0.2% in January

UK GDP grew again in January, with an increase of 0.2% compared to the previous month after the 0.1% monthly contraction recorded in December 2023.

This is the first known GDP estimate data after the Office for National Statistics confirmed that the UK economy entered recession at the end of 2023 by restricting the last two quarters of contraction. A 0.2% rise in the services sector and a 1.1% rise in the construction sector contributed to the January recovery, despite a 0.2% decline in industrial production, according to data published today by the National Bureau of Statistics.

Despite recording a technical recession at the end of last year – defined by two consecutive quarters of falling GDP – the UK recorded growth of 0.1% in 2023 as a whole.

The Office for Budget Responsibility (OBR), which oversees public finances, forecast on March 6 that GDP would grow by 0.8% this year and 1.9% in 2025.

The Office for Budget Responsibility also said inflation, now at 4%, would be below the Bank of England's official target of 2% within a few months.

Conservative sector minister Jeremy Hunt said: “Although the last few years have been difficult, today’s figures show we are making progress in growing the economy,” and indicated that he would continue to cut taxes in light of this anal election.

For her part, Labor Party spokeswoman for the economy, Rachel Reeves, rejected the success of the government's plan, and urged Prime Minister Rishi Sunak to advance the election date.

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