UK economy grows by 0.1% in unexpected boost for Rachel Reeves
GuardianFeb 13
UK: Economy Grows 0.1% in Q4 2024
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Above: Chancellor of the Exchequer Rachel Reeves speaks during a meeting with business leaders on Jan. 28, 2025 in London, England. Image copyright: Benjamin Cremel/WPA Pool/Getty Images via Getty Images
The Facts
UK gross domestic product (GDP) unexpectedly expanded by 0.1% in the fourth quarter of 2024, with the services sector growing by 0.2%, construction increasing by 0.5%, and production declining by 0.8%. Despite the quarterly growth, GDP per capita saw a 0.1% decrease.
Monthly GDP data in December 2024 showed 0.4% growth, primarily driven by a 0.4% services sector growth, following growth of 0.1% in November and a 0.1% decline in October. Adjusted to inflation, the UK economy grew by 0.9% in 2024, though real GDP per capita declined by 0.1%.
The services sector's December growth was largely supported by professional, scientific, and technical activities – which grew by 1.2% – while administrative and support services increased by 1.1% after two consecutive monthly declines.
The Spin
Left narrative
The latest ONS statistics show promising signs for the UK economy, with growth surpassing expectations and offering much-needed relief after a challenging year. However, Labour remains committed to further and faster economic growth, improve living standards, and building a stable, investment-friendly environment that benefits all working people across the UK.
Right narrative
While the economy has narrowly avoided recession, current warning signs are impossible to ignore. Much of this meager growth comes from increased government spending, not private sector vitality. Key sectors like manufacturing and retail are shrinking, and GDP per capita is falling. Tax hikes and looming regulatory changes threaten to stifle businesses further, making the outlook for sustained growth bleak. More must be done to prevent a deeper downturn.
