In the third quarter of 2024, the British economy increased by 0.1%, which was weaker than anticipated, according to official data released on Friday.
According to Reuters and the Bank of England, economists predicted a 0.2% expansion, which would be slower than the strong growth saw in the first half of 2024 as the economy recovered from the brief recession of the previous year.
The BoE reported a better 2025 but reduced its 2024 annual growth projection to 1% from 1.25% last week, citing a short-term economic boost from Finance Minister Rachel Reeves’ large-scale budget plans.
Economic production in Britain has expanded modestly since the COVID-19 epidemic. The only major advanced economy to do considerably worse is Germany, which was also severely impacted by rising energy prices following Russia’s invasion of Ukraine.
During his campaign for the July 4 election, Prime Minister Keir Starmer stated that he wants the economy to expand by 2.5 percent annually, a rate that Britain has not consistently attained since before the 2008 financial crisis.
Rachel Reeves, the finance minister, wants Britain to lead the Group of Seven advanced countries in GDP growth per capita for two years in a row.
