UK Economy Records Modest Growth in Q4 2024, Easing Pressure on Chancellor
LONDON (AP) - The UK economy managed to secure 0.1% quarterly growth in the final quarter of 2024, boosted by a 0.4% expansion in December.
The Office for National Statistics attributed the December growth to a broad-based increase, with pubs experiencing particularly strong performance ahead of Christmas. This contributed to a positive overall quarter.
The fourth quarter figures pushed the economy's annual growth rate for 2024 to 0.9%. The quarterly increase follows a period of stagnation in the previous three months and may alleviate some pressure on Chancellor of the Exchequer Rachel Reeves, who has faced criticism for her role in the economic slowdown since Labour regained power in July.
Last week, the Bank of England halved its growth forecast for the UK economy in 2025 to 0.75%, alongside a rate cut to 4.50%. If realized, this would be a significant setback for the new Labour government, which has prioritized economic growth to enhance living standards and fund essential public services. The lack of growth has led to a decline in the party's popularity since its election victory in July.