- NEWS Desk Global
UK ECONOMY'S GROWTH POINTS TO EXIT FROM RECESSION
Britain's lackluster economy appears to be on track to emerge from a mild recession, with output expanding for the second consecutive month in February, and January's figures being revised upward. Gross Domestic Product (GDP) increased by 0.1% in monthly terms in February, aligning with expectations from a Reuters poll of economists. These numbers indicate that the UK economy began 2024 with improved momentum, as the three-month average growth rate rose to 0.2% in February from zero in January, marking the highest such reading since August.
These figures are likely to reinforce the Bank of England's cautious stance regarding the potential for interest rate cuts, as the economy appears to be slightly outperforming the central bank's expectation of a 0.1% expansion in the first quarter. Britain slipped into recession during the latter part of last year, presenting Prime Minister Rishi Sunak with the challenge of reassuring voters about the safety of the economy under his leadership ahead of an anticipated election later this year.