UK lastly strikes out of recession as economic system sees 0.6% development

The UK has moved out of recession as the economy has grown by 0.6%, official figures show.

The country had experienced two quarters of decline – which represents a technical recession – in the back half of 2023. Economists had predicted a 0.4% improvement for the latest quarter but the Office for National Statistics said on Friday that gross domestic product (GDP) is estimated to have risen at a faster-than-expected 0.6% between January and March.

But Labour warned against allowing Tory ministers to celebrate the news as they said families are still worse off than when Rishi Sunak entered No10. Labour’s Shadow Chancellor of the Exchequer Rachel Reeves said: “This is no time for Conservative ministers to be doing a victory lap and telling the British people that they have never had it so good.

“The economy is still £300 smaller per person than when Rishi Sunak became Prime Minister. After 14 years of economic chaos, working people are still worse off.

“Prices are still significantly higher in the shops, families are paying hundreds of pounds more on monthly mortgage bills, and the economy is forecast to grow by just one per cent next year. It’s time for change. Only Labour has a long-term plan to grow the economy, create jobs and make working people better off.”

Chancellor Jeremy Hunt said: “There is no doubt it has been a difficult few years, but today’s growth figures are proof that the economy is returning to full health for the first time since the pandemic.

“We’re growing this year and have the best outlook among European G7 countries over the next six years, with wages growing faster than inflation, energy prices falling and tax cuts worth £900 to the average worker hitting bank accounts.”

ONS director of economic statistics Liz McKeown said: “After two quarters of contraction, the UK economy returned to positive growth in the first three months of this year.

“There was broad-based strength across the service industries with retail, public transport and haulage, and health all performing well. Car manufacturers also had a good quarter. These were only a little offset by another weak quarter for construction.”