Rachel Reeves received a lifeline on her birthday today, because the economy unexpectedly grew in the last quarter of last year.
GDP increased by 0.1 percent – barely any detectable, but considerably better than the 0.1 percent contraction analysts were overtaken.
The increase was fed by 0.4 percent expansion in December, despite predictions of a terrible performance for the Christmas. During last year as a whole growth was 0.9 percent – almost all in the first half.
The official data facilitates the alarm that the country could enter into a technical recession, defined as two consecutive neighborhoods of falling activities.
But British became poorer on a head, because the immigration continues to run at a high level. GDP per capita of the population fell by 0.1 percent in the fourth quarter and with the same ratio in 2024.
And the figures emerged in the midst of mounting fear that Mrs. Reeves – who is 46 today – can be forced to raise taxes again in the midst of retaining growth, spiking -debt interest and worldwide trade tensions.
It is assumed that the OBR wake dog has completely wiped out the £ 10 billion 'headroom', the Chancellor who was built into its amounts in October.
Rachel Reeves received a lifeline today, because the economy unexpectedly grew in the last quarter of last year
GDP rose by 0.1 percent between October and December – hardly any detectable, but considerably better than the 0.1 percent contracted analysts were in the neighborhood
Our Director of Economic Statistics Liz McKeown said: 'The economy recorded in December after several weak months, which means that the economy generally grew a bit in the fourth quarter of last year.
'During the quarter, the growth in services and construction was partially compensated by a production decrease. GDP per head, on the other hand, fell back somewhat in the quarter.
'In December wholesalers, film distribution and pubs and bars all had a strong month, just like the production of machines and the often pharmaceutical industry. However, these were partially compensated by weak months for computer programming, publishing and car sales. '
Mrs. Reeves said she invested in the economy and “accepted the blockers.” 'For too long, politicians have accepted an economy that has failed working people. I'll not do it, “she said.
“After 14 years of Flatlining -lifelevards, we go further and faster through our plan for change to put more money in people's pockets.”
Shadow Chancellor Mel Stride said that the budget of October Mrs Reeves was 'killing growth' and that working people and companies 'already pay for her choices'.
He said: “The Chancellor promised the fastest growing economy in the G7, but her budget kills growth.
“Working people and companies already pay for her choices with once rocking taxes, hundreds of thousands of job reductions and business trust fall.”
The updated predictions of the Bank of England suggested last week that inflation is slower than hoped, and the growth has been weaker than expected
Simon Pittaway, senior economist at the Resolution Foundation, said: 'Better than expected growth at the end of last year means that Great -Britain has avoided a new technical recession. But it remains entangled in a decrease in the living standards, with GDP per person still below pre-Pandemic level.
'In recent weeks, the Chancellor has drawn up welcome plans to stimulate growth in the longer term, but in the short term action may be needed to get the economy out of its current malaise.
“And limited to the government because of its tax rules, which the Chancellor is already in the risk of missing next month, many hope that the Bank of England can save with faster interest rate lets.”
Leked details – effectively confirmed by the Treasury Permanent Secretary yesterday – suggest that the independent OBR followed the Bank of England when paying off predictions for the performance of the economy.
James Bowler told MPs that an investigation would be submitted in how the provisional figures, which a small shortage showed, were handed over to Bloomberg.
The Niesr Think-Tank has expressed his concern that if there is a shock for UK PLC, MS Reeves will have to violate its tax rules or yield more income to support activities with expenses.
