Government data shows UK economy in shallow recession in 2023: Business News
Economy

Economy Makes Slow Progress Amidst Political Pressure and Inflation Concerns: A Look at the Economic Situation in Britain in Early 2024

Despite recent reports that Britain slipped into a shallow recession last year, there are some positive signs for the economy at the outset of 2024. According to the Office for National Statistics, GDP expanded by 0.2% in January from December and recent surveys indicate continued growth in February and March. However, despite these positive trends, Britain has been slow to recover from the impacts of the COVID-19 pandemic, with the economy only 1% larger than it was in late 2019.

Prime Minister Rishi Sunak is facing criticism from the opposition Labour Party for overseeing what they call “Rishi’s recession.” The Bank of England has suggested that British inflation is nearing a point where they can start cutting interest rates. They expect the economy to grow by 0.25% this year, whereas official budget forecasters anticipate a 0.8% expansion. The latest figures show an increase in households’ real disposable income by 0.7% compared to the previous quarter, as well as a slight rise in the savings ratio to 10.2% in the final quarter of last year. These indicators suggest a cautious approach from consumers in light of the economic uncertainty.

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