UK Economy Bounces Back from Recession with 0.6% GDP Growth in Q1

The United Kingdom has seen a resurgence in its economy, marking a 0.6% increase in gross domestic product during the first quarter, surpassing expectations of 0.4% from economists polled by Reuters.

The UK economy demonstrated signs of recovery, following a period of mild recession in the latter part of 2023 due to ongoing inflationary pressures from two consecutive quarters of negative growth.

During the January to March period, the production sector in the UK expanded by 0.8%, contrasting with a 0.9% decline in the construction sector. The economy experienced a monthly growth of 0.4% in March, building upon a 0.2% expansion in February.

The Bank of England’s Monetary Policy Committee recently underscored continued inflationary pressures while maintaining the main interest rate at 5.25%. It anticipated headline inflation to hover around 2% in the short term, with a potential uptick later in the year, as the impact of plummeting energy prices subsides.