What's happened
The UK's GDP growth for Q2 2024 has been revised down from 0.6% to 0.5%, indicating a slower recovery from recession. Despite this, GDP for 2023 is now estimated to have increased by 0.3%. The economy faces challenges, including stagnant growth in recent months and rising household savings.
Why it matters
What the papers say
According to The Independent, the ONS reported a downward revision of GDP growth for Q2 2024, highlighting a slower recovery from recession. Liz McKeown, director of economic statistics for the ONS, noted that while the quarterly growth path remains largely unchanged, household savings have increased significantly. In contrast, The Telegraph emphasized that even with GDP growth, real GDP per head has declined, indicating that Britons are becoming poorer despite overall economic growth. This sentiment is echoed by PwC economist Gora Suri, who pointed out that while growth has improved, uncertainty remains due to the upcoming Budget. The analysis from Axios and the New York Times further illustrates the complexities of interpreting economic data, with revisions showing stronger growth in previous years but also indicating potential deceleration heading into 2024.
How we got here
The UK economy has been recovering from a recession that ended in early 2024, with GDP growth initially estimated at 0.6% for Q2 2024. Recent revisions by the Office for National Statistics (ONS) reflect updated data and a more nuanced view of economic performance.
Common question
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What Do the Latest GDP Revisions Indicate About the US and UK Economies?
Recent revisions to GDP data in the UK and US have unveiled a more intricate economic landscape. While the UK's GDP per capita has seen a decline, the US economy is showing stronger growth than previously reported. These changes raise important questions about the current state of both economies and their future trajectories.
More on these topics
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In the United States, the Department of Commerce is an executive department of the federal government concerned with promoting economic growth.
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The Office for National Statistics is the executive office of the UK Statistics Authority, a non-ministerial department which reports directly to the UK Parliament.