What's happened
The UK economy has grown by 0.6% in the first quarter of 2024, officially exiting a recession. The growth was driven by the services sector, with some areas showing strong expansion while others struggled. Bank of England governor Andrew Bailey noted the economy's positive trajectory but cautioned that it was not yet a robust recovery.
What's behind the headline?
What the papers say
The New York Times and BBC News both report on the UK economy's exit from recession, highlighting the growth in the services sector as a key driver. The New York Times emphasizes the mixed nature of the economic data, with some sectors thriving while others struggle. In contrast, BBC News focuses on the chancellor's optimism about the economy's recovery, tempered by the Bank of England governor's cautious outlook.
How we got here
The UK economy had experienced a recession at the end of the previous year, marked by two consecutive quarters of contraction. The recent growth in the first quarter of 2024 signals a reversal of this trend, with the services sector playing a pivotal role in driving the economic expansion. Various industries within the services sector, such as transport, legal services, and scientific research, contributed to the positive growth.
Go deeper
- How did the services sector contribute to the UK's economic growth?
- What challenges might the UK economy face in sustaining its recovery?
- What role does government policy play in supporting economic growth?
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The United Kingdom of Great Britain and Northern Ireland, commonly known as the United Kingdom or Britain, is a sovereign country located off the northÂwestern coast of the European mainland.
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The National Institute of Economic and Social Research, established in 1938, is Britain's oldest independent economic research institute.
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