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UK GDP saw growth of 0.1% in Q4 2024, above expectations of a contraction of -0.1%.
UK GDP expanded by 0.4% month on month in December, above expectations of 0.1% growth. (Trading Economics).
Isaac Stell, Investment Manager at Wealth Club said, “UK GDP grew by 0.1% in the final quarter of 2024 following no growth in the third quarter. Month-on-month GDP for December showed surprising strength growing at 0.4%.
“Services output, the dominant sector in the UK grew by 0.2%, construction grew by 0.5%, while production fell by 0.8%.
“You can almost hear the sigh of relief from behind the door of No.11 Downing Street, as the small but better than expected GDP figures gift the Chancellor a slither of good news and relieves a little stress on a Government under pressure to execute on their manifesto promise to deliver growth.
However, Reeves and Co will not be hanging out the bunting quite so quickly as a reckoning is on its way with the OBR set to deliver a report showing minimal or no headroom when it comes to meeting her self-imposed ‘stability rules’. With Reeves committed to her non-negotiable fiscal rules, it is likely that public expenditure will be cut to balance the books with the prosect of additional tax hikes looming in the background. The impact of any additional taxes will likely hamper growth going forward.”
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