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UK economic growth picks up at the start of 2024 – GDP


British gross domestic product grew by 0.2% month on month in January, in line with expectations, after contracting by 0.1% in December, with a rebound in retailing, wholesaling and house building, being the main contributors to positive results.

Initial signs that the economy started to return to growth in early 2024, offering some relief after it entered a shallow recession in the second half of 2023, with 0.3% contraction seen in the last three months of the last year.

Although positive January numbers boost optimism that the economy might be picking up, after being very sluggish since its initial recovery from the COVID-19 pandemic, affected by a surge in the cost of energy and Bank of England’s high interest rates, it is too early to know whether the economy has emerged from contraction.

Separate data showed that UK industrial production grew below expectations in January and trade gap widened, although less than expected, adding to cautious approach.

The government expects the economy to grow by 0.8% in 2024, compared to Bank of England’s forecast for 0.25% growth.