THE UK economy grew slightly more than first estimated in 2024, according to official data released on Friday, providing a small boost for the government after it revised down its growth forecast for 2025.
The Office for National Statistics (ONS) said gross domestic product expanded by 1.1 per cent in 2024, up from an initial estimate of 0.9 per cent.
The Labour government this week halved its growth forecast for 2025 while announcing spending cuts, including reductions to disability welfare payments and departmental budgets, to address public finances.
"The economy grew slightly more strongly in the first half of last year than previously estimated but continues to show little growth since last summer," ONS chief economist Grant Fitzner said.
Prime minister Keir Starmer has prioritised economic growth, but the economy has struggled to gain momentum since Labour took office in July.
Analysts at research group Pantheon Macroeconomics said the revised figures indicate "the UK's mild recession last year was even milder and the subsequent recovery even stronger." They added, "That shows how much growth could improve if uncertainty eases back from its current elevated levels."
The ONS also reported that British retail sales rose by one per cent in February, following an increase in January.
"Wage growth and the imminent uplift to the minimum wage may have left the consumer in a more positive frame of mind than had been feared," said Richard Hunter, head of markets at investment platform Interactive Investor.
(With inputs from AFP)
