The British economy managed to eke out quarterly growth of 0.1% in the final quarter of 2024 following a stronger than anticipated performance in December. The Office for National Statistics said Thursday that the 0.4% expansion in December was a result of a broad-based expansion, with pubs doing particularly well in the run-up to Christmas, helping the quarter to turn positive. The fourth quarter figures means the economy grew by 0.9% overall in 2024.
The quarterly increase followed no growth in the previous three months and may ease some of the pressure on Treasury chief Rachel Reeves, who critics say has been partly responsible for the economic slowdown since Labour returned to power in July. Last week, the Bank of England halved its growth forecast for the British economy for 2025 to 0.75% as it cut its main interest rate to 4.50%. If that turns out to be remotely accurate, it will be hugely disappointing news for the U.K.’s new Labour government, which has made growth its top mission as it will boost living standards and generate funds for cash-starved public services. With growth proving elusive, the party’s popularity has fallen sharply since its election victory in July.
