Gross domestic product increases by 0.6%, outperforming European peers

  • U.K. economy returns to growth in Q1 2024
  • Gross domestic product increases by 0.6%
  • Strongest performance since Q4 2021
  • Outperforms most European peers
  • U.K. Prime Minister Rishi Sunak: ‘The economy has turned a corner’
  • Bank of England likely to lower borrowing costs
  • Buoyant services sector fuels growth
  • Construction output dampened by wet weather
  • Economy expected to grow by 0.8% in 2024
  • OECD predicts slow growth due to income taxes and pre-election uncertainty

The U.K. economy returned to growth in the first three months of the year, with gross domestic product increasing by 0.6% compared to the previous quarter. This marks the strongest performance since Q4 2021. The U.K. outperformed most of its European peers, with only Spain growing at a more rapid pace. U.K. Prime Minister Rishi Sunak stated that ‘the economy has turned a corner.’ The Bank of England is likely to lower borrowing costs in the coming months, and the buoyant services sector fueled the growth in Q1. However, construction output was dampened by unusually wet weather. Despite the return to growth, economists expect a slow expansion, with the economy projected to grow by 0.8% in 2024. The Organisation for Economic Co-operation and Development (OECD) predicts even slower growth due to income taxes and pre-election uncertainty.

Factuality Level: 7
Factuality Justification: The article provides factual information about the U.K. economy’s performance in the first quarter of the year, citing data from the Office for National Statistics. It includes quotes from experts and officials, as well as forecasts from economic research institutions. While there is some speculation about future economic growth, it is clearly distinguished from the reported facts.
Noise Level: 3
Noise Justification: The article provides relevant information about the U.K. economy’s performance in the first quarter of the year, including GDP growth and factors influencing it. It includes quotes from experts and officials, as well as projections for future growth. However, it lacks in-depth analysis of long-term trends or antifragility, and does not explore the consequences of decisions on those who bear the risks.
Financial Relevance: Yes
Financial Markets Impacted: The news article provides information on the performance of the U.K. economy, which can impact financial markets and companies in the country.
Presence Of Extreme Event: No
Nature Of Extreme Event: No
Impact Rating Of The Extreme Event: No
Rating Justification: There is no mention of an extreme event in the news article.
Private Companies: Quilter Cheviot
Key People: Rishi Sunak (U.K. Prime Minister), Richard Carter (Head of fixed-interest research at Quilter Cheviot), Andrew Bailey (BOE Governor), Ruth Gregory (Economist at Capital Economics)

Reported publicly: www.wsj.com