LONDON — In the last quarter of 2024, the British economy experienced a slight growth of 0.1%, aided by a better-than-expected performance in December.
According to data released by the Office for National Statistics, December saw a 0.4% increase, which was largely driven by a widespread expansion across various sectors, with pubs particularly thriving as the holiday season approached.
Overall, this growth in the fourth quarter translates to an annual growth rate of 0.9% for the entire year of 2024.
This modest rise follows a period of stagnation over the previous three months, potentially relieving some of the pressures faced by Treasury chief Rachel Reeves, who has faced criticism for her role in the economic slowdown since Labour took office in July.
Just last week, the Bank of England revised its growth forecast for the British economy for 2025 down to 0.75% while also reducing its key interest rate to 4.5%.
If these projections prove to be correct, they would be a significant disappointment for the newly installed Labour government, which has prioritized economic growth as a primary goal. The ruling party has made commitments to enhance living standards and secure funding for under-resourced public services. However, with growth remaining elusive, their popularity has notably declined since the election victory in July.
Recently, Reeves has proposed several initiatives aimed at fostering long-term economic growth. These include her support for a proposed third runway at Heathrow Airport and the creation of a technology hub comparable to Silicon Valley in the region between Oxford and Cambridge. She has also expressed support for the revitalization of areas surrounding Manchester United’s Old Trafford stadium and called for a “reset” of post-Brexit economic ties with the European Union.
Reeves emphasized that the government will work to accelerate growth efforts in the upcoming months and years.
“That’s why we’re addressing the obstacles to reinvigorate construction in Britain, investing in our roads, railways, and energy frameworks, and eliminating the hurdles that hinder businesses from expanding,” she stated.
