UK says economy outperformed projections, grew by 0.7% in Q1 2024

The United Kingdom (UK) government says the country’s economy grew at a faster rate than previously anticipated in the first quarter (Q1) of 2024.

In a report on Friday, the UK’s Office for National Statistics (ONS) said the country’s gross domestic product (GDP) growth is estimated to have increased by 0.7 percent in Q1.

The ONS said the GDP growth was revised up from a first estimate of 0.6 percent.

“Looking at more timely monthly estimates of GDP, it was recently estimated that the economy showed no growth in April 2024,” the statistics office said.

“GDP is estimated to have increased by 0.3% in Quarter 1 2024 compared with the same quarter a year ago.”

Several sectors of the economy also grew, according to the body.

In output terms, the ONS said services grew by 0.8 percent in the quarter with widespread growth across the sector.

Also, the production sector grew by 0.6 percent while the construction sector fell by 0.6 percent. 

“In expenditure terms, there were increases in the volume of net trade and household spending, partially offset by falls in gross capital formation and government consumption,” the ONS said.

“The household saving ratio is estimated to be 11.1% in the latest quarter, up from 10.2% in Quarter 4 (Oct to Dec) 2023.

“Real households’ disposable income (RHDI) is estimated to have grown by 0.7% in Quarter 1 2024, maintaining the same growth as the previous quarter.”

The United Kingdom’s economy entered a recession as its GDP fell by 0.3 percent in December 2023 — but the country exited the recession and returned to growth in Q1 2024. 

On June 19, ONS said UK inflation decreased to 2 percent in May, from 2.3 percent in April — the lowest in nearly three years.

The development comes days before the 2024 UK general election, scheduled for July 4, which will determine the composition of the house of commons.

Prime Minister Rishi Sunak’s Conservative Party is seeking another mandate after 14 years in power, while the Labour Party has maintained a 20-point polling lead under leader Keir Starmer in recent weeks.