Positive Signs for Britain’s Economy at the Outset of 2024

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

Despite recent reports of a shallow recession, Britain’s economy is showing some positive signs at the outset of 2024. GDP expanded by 0.2% in January from December and recent surveys indicate continued growth in February and March. However, the UK 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.

Inflation is nearing a point where the Bank of England can start cutting interest rates, according to their latest predictions. They expect the economy to grow by 0.25% this year, while official budget forecasters anticipate a 0.8% expansion. Despite these positive trends, households remain cautious in light of economic uncertainty, with an increase in real disposable income of 0.7% compared to the previous quarter and a slight rise in the savings ratio to 10.2% in the final quarter of last year.

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