UK Economy Avoids Recession with 0.1% Growth but Faces Persistent Challenges

While narrowly escaping a recession, the UK's stagnant GDP growth raises concerns about living standards, productivity, and fiscal sustainability.

The UK economy grew by 0.1% in the last quarter of 2024, narrowly avoiding a technical recession after a flat third quarter.
GDP per person fell by 0.1% in the fourth quarter, marking a 'living standards recession' as productivity and output per capita remain weak.
Chancellor Rachel Reeves emphasized the need for stronger growth to improve living standards, but analysts warn current growth is insufficient to address economic insecurity.
Economic sectors showed mixed performance, with growth driven by government spending in health and public administration, while retail and manufacturing contracted.
Forecasts for 2025 GDP growth have been downgraded, with experts warning of potential headwinds from high inflation, rising taxes, and business investment concerns.