UK GDP Finally Pops Up – How Close Was It to a Breathing-Stop?
In the final quarter of 2024, the UK’s economy nudged up by a modest 0.1%, beating the odds that it’d shrink by –0.1%. Even better: December’s month‑on‑month growth hit 0.4%, well above the expected 0.1%.
What’s Behind the Numbers?
- Services – The star of the show, grew by 0.2%.
- Construction – A solid 0.5% uptick, showing that buildings aren’t going anywhere.
- Production – Took a hit of –0.8%, keeping the industry in check.
Isaac Stell from Wealth Club joked that you could almost hear a sigh of relief echoing down the corridors of Downing Street. “It’s a small win, but better than the “–0.1%” we feared. The Chancellor gets a brief moment of lighthearted relief in a period when the government’s mission to deliver growth is under the microscope.”
What’s Next? A Tense Forecast Ahead
Despite the rosy snapshot, the Office for Budget Responsibility (OBR) is gearing up to publish a report that might not give the economy much wiggle room. If their findings confirm that there’s little or no headroom left without it breaking its “stability rules,” we’re likely to see:
- Public spending cuts to keep the books balanced.
- Potential tax hikes lurking on the horizon, which could dampen future growth.
So while the current figures feel like a breath of fresh air, the road ahead is still packed with policy puzzles. Stay tuned, because the next chapter could turn that brief sigh of relief into a full-blown sigh.
