The British economy expanded 0.7% on quarter in Q1 2024, slightly higher than initial estimates of 0.6%. It is the strongest expansion in over two years, ending the recession it entered last year. Services grew by 0.8%, higher than 0.7% in the first estimate with scientific research and development and legal activities making the largest upward contribution. The production sector grew by 0.6%, below 0.8% early reported, due to a downward revision for manufacturing (1.1% vs 1.4%). The construction sector fell by 0.6% (vs -0.9%). In expenditure terms, imports (-2.7% vs -2.3%) fell more than exports (-1%). Also, household spending rose more (0.4% vs 0.2%), mainly due to recreation and culture; housing; and food and non-alcoholic drinks. On the other hand, gross capital formation rose less than expected (0.9% vs 1.4%) and government consumption was revised to show no growth (vs 0.3%). Year-on-year, the British economy grew 0.3%, also above 0.2% in the first estimate. source: Office for National Statistics
The Gross Domestic Product (GDP) in the United Kingdom expanded 0.70 percent in the first quarter of 2024 over the previous quarter. GDP Growth Rate in the United Kingdom averaged 0.58 percent from 1955 until 2024, reaching an all time high of 16.80 percent in the third quarter of 2020 and a record low of -20.30 percent in the second quarter of 2020. This page provides the latest reported value for - United Kingdom GDP Growth Rate - plus previous releases, historical high and low, short-term forecast and long-term prediction, economic calendar, survey consensus and news. United Kingdom GDP Growth Rate - data, historical chart, forecasts and calendar of releases - was last updated on August of 2024.
The Gross Domestic Product (GDP) in the United Kingdom expanded 0.70 percent in the first quarter of 2024 over the previous quarter. GDP Growth Rate in the United Kingdom is expected to be 0.30 percent by the end of this quarter, according to Trading Economics global macro models and analysts expectations. In the long-term, the United Kingdom GDP Growth Rate is projected to trend around 0.40 percent in 2025, according to our econometric models.
United Kingdom GDP Growth Rate
The services sector is the most important and account for 79 percent of United Kingdom's GDP. The biggest segments within services are: government, education and health (19 percent of total GDP); real estate (12 percent); professional, scientific and technical activities and administrative and support services (12 percent); wholesale and retail trade (11 percent); and financial and insurance (8 percent). Industry accounts for 21 percent of the GDP and the largest segments within this sector are: manufacturing (10 percent of total GDP) and construction (6 percent). The Agriculture sector accounts for only 1 percent of GDP. Composition of the GDP on the expenditure side: household consumption (65 percent), government expenditure (20 percent) and gross fixed capital formation (17 percent). Exports of goods and services account for 28 percent of GDP while imports account for 30 percent, subtracting 2 percent from GDP.
| Actual | Previous | Highest | Lowest | Dates | Unit | Frequency | ||
|---|---|---|---|---|---|---|---|---|
| 0.70 | -0.30 | 16.80 | -20.30 | 1955 - 2024 | percent | Quarterly | SA |
News Stream
UK GDP Growth Revised Higher
The British economy expanded 0.7% on quarter in Q1 2024, slightly higher than initial estimates of 0.6%. It is the strongest expansion in over two years, ending the recession it entered last year. Services grew by 0.8%, higher than 0.7% in the first estimate with scientific research and development and legal activities making the largest upward contribution. The production sector grew by 0.6%, below 0.8% early reported, due to a downward revision for manufacturing (1.1% vs 1.4%). The construction sector fell by 0.6% (vs -0.9%). In expenditure terms, imports (-2.7% vs -2.3%) fell more than exports (-1%). Also, household spending rose more (0.4% vs 0.2%), mainly due to recreation and culture; housing; and food and non-alcoholic drinks. On the other hand, gross capital formation rose less than expected (0.9% vs 1.4%) and government consumption was revised to show no growth (vs 0.3%). Year-on-year, the British economy grew 0.3%, also above 0.2% in the first estimate.
2024-06-28
UK GDP Grows the Most in 2-Years
The British economy grew 0.6% on quarter in the first three months of 2024, above forecasts of 0.4%, and ending the recession it entered last year, preliminary estimates showed. It also marks the strongest expansion in over two years, with services rising 0.7% amid widespread growth across the sector, although land transport services via pipelines (excluding rail transport) soared 6.4%. Also, the production sector grew 0.8%, with manufacturing making the largest contribution, namely transport equipment (5.7%) while the construction sector fell 0.9%. In expenditure terms, household consumption went up 0.2%, led by spending on housing, water and fuels, recreation and culture, restaurants and hotels. Net tourism on the other hand, contributed negatively to growth. Government spending rose 0.3%, reflecting higher activity in health and transport. Gross fixed capital formation increased 1.4%, of which business investment (0.9%). Also, imports (-2.3%) fell more than exports (-1%).
2024-05-10
UK Economy Enters Recession in Q4
The UK's economy shrank by 0.3% in the final quarter of 2023, entering a technical recession for the first time since the aftermath of the COVID-19 outbreak in the initial half of 2020, as high inflation, record borrowing costs, and weak external demand weighed on demand and activity. Household consumption declined by 0.1% (vs -0.9% in Q3) due to lower spending on recreation and culture, household goods and services, transport, and clothing and footwear. Additionally, net trade contributed negatively to GDP as exports fell more than imports, along with inventory changes. On the other hand, fixed investment rose by 0.9%, rebounding from two periods of declines, boosted by increases in other buildings and transport. Finally, government consumption edged up 0.1%, marking a third period of growth, driven by higher spending on public administration and defense, which offset lower activity in education and health. On a yearly basis, the UK economy contracted by 0.2% in the fourth quarter.
2024-03-28
