United Kingdom out of Recession, +0.6% in First Quarter

Data related to the first quarter show that the United Kingdom has emerged from a “technical recession.” London’s economy contracted in the last two quarters of 2023, and now it is not only growing again, but also exceeding expectations: the Office for National Statistics (ONS) estimates that growth of +0.6%, which exceeds the previous forecast of 0.4%.

Specifically, the British economy contracted by 0.1% in the third quarter of 2023 and by 0.3% between October and November. For now, there is growth, and the trend is set to consolidate in the coming months.

Earlier on May 9, the Bank of England’s Monetary Policy Committee determined that it would not raise the interest rate at 5.25%, the highest level in 16 years. The aim is to “achieve the 2% inflation target and help support economic growth and employment,” and the Bank notes that “key indicators of the sustainability of inflation are falling as expected, while remaining elevated.”