UK no longer in recession, official figures show

The Office for National Statistics (ONS) reported that the Gross Domestic Product (GDP) exceeded expectations by growing 0.6% between January and March, surpassing economists’ forecasts of 0.4%. This growth follows a declared recession in February, marked by two consecutive quarters of economic contraction. The preceding downturn, with GDP shrinking by 0.3% from October to December, was attributed to diminished consumer spending power amidst elevated inflation and energy costs, compounded by prolonged periods of inclement weather deterring shoppers.

Unlike previous recessions, such as the prolonged aftermath of the 2008 financial crisis, this downturn was anticipated to be short-lived. Chancellor Jeremy Hunt heralded the latest growth figures as evidence of the economy’s resurgence, citing promising indicators such as rising wages outpacing inflation, decreasing energy prices, and forthcoming tax cuts amounting to £900 for the average worker.

These developments coincide with the Bank of England’s decision to maintain interest rates at 5.25% and revise its economic forecasts, anticipating stronger growth, lower unemployment, and reduced inflation rates for the UK economy.