Time: 2024-07-05
The United Kingdom 's economy has shown signs of recovery as it emerged from a recession , with revised figures indicating a stronger growth rate than previously estimated . According to the Office for National Statistics ( ONS ) , the Gross domestic product ( GDP ) increased by 0.7 % between January and March , exceeding the initial projection of 0.6 % . The rise in GDP is primarily attributed to the services sector , which constitutes a significant portion of the economy , accounting for almost 80 % of overall economic activity.
The growth trend in the UK economy has become a focal point in the ongoing general election campaign , with various parties presenting their plans to bolster economic stability and prosperity . Prime Minister Rishi Sunak of the Conservative Party welcomed the revised growth figures , emphasizing his party 's commitment to ensuring a secure future for families . In contrast , the Labour Party criticized the Conservatives for what they termed as " 14 years of economic vandalism " that had adversely impacted the populace , advocating for a growth - oriented approach to economic policy.
Amid the positive revisions in Economic growth , concerns persist regarding the impact of rising mortgage repayments , escalating living costs , and indirect taxes on households . The Liberal Democrat Treasury spokesperson , Sarah Olney , highlighted the challenges faced by families grappling with financial pressures despite the improved economic outlook . The need for policies that address the fundamental issues affecting households , such as mounting living expenses and stagnant wage growth , remains a key aspect of the economic discourse in the UK.
The latest economic data underscores the significance of sustained growth in the services sector , which has been a driving force behind the improved GDP figures . While the services industry experienced an upward revision in growth , manufacturing output saw a downward adjustment based on updated data . The revision places the UK as the fastest - growing economy among the G7 nations with advanced economies in the first quarter of 2024 , signaling a positive trajectory for the country 's economic recovery.
Looking ahead , the debate over interest rates and monetary policy continues to shape economic discussions , with the Bank of England facing calls for a rate cut to alleviate financial burdens on consumers . The upcoming months are anticipated to bring decisions on interest rate adjustments , with August or September being identified as potential timelines for policy changes . As the economic landscape evolves , the focus remains on fostering sustainable growth , enhancing household incomes , and addressing the challenges posed by the post - pandemic economic environment.
Business
