The UK government reports that the country’s economy grew faster than initially expected in the first quarter (Q1) of 2024. According to a Friday report from the Office for National Statistics (ONS), the gross domestic product (GDP) increased by 0.7 percent in Q1, up from an initial estimate of 0.6 percent.
The ONS also mentioned that while the monthly GDP estimate for April 2024 showed no growth, the GDP for Q1 2024 was 0.3 percent higher compared to the same period last year. Various sectors contributed to this growth, with the services sector growing by 0.8 percent and the production sector by 0.6 percent, though the construction sector saw a decline of 0.6 percent.
In terms of expenditure, there were increases in net trade volume and household spending, despite reductions in gross capital formation and government consumption. The household saving ratio rose to 11.1% from 10.2% in the previous quarter, and real households’ disposable income (RHDI) grew by 0.7%, matching the growth rate of the previous quarter.
After a recession marked by a 0.3 percent GDP decline in December 2023, the UK economy returned to growth in Q1 2024. Additionally, the ONS reported on June 19 that UK inflation dropped to 2 percent in May, down from 2.3 percent in April, marking the lowest rate in nearly three years.
These economic developments come just before the 2024 UK general election on July 4, which will decide the composition of the House of Commons. Prime Minister Rishi Sunak’s Conservative Party is seeking re-election after 14 years in power, while the Labour Party, led by Keir Starmer, has maintained a 20-point lead in recent polls.
 of){kind=link}