UK growth nearly stagnant in last quarter of 2024
The UK economy barely grew in the final quarter of 2024 as estimates remained unchanged, figures from the Office for National Statistics (ONS) said.
Chancellor Rachel Reeves has vowed to deliver growth “further and faster”.
But Reeves has faced a rocky start as GDP only grew by 0.1 per cent between October and December.
Previous estimates said growth would come in at 0.1 per cent for last year’s final quarter.
The small expansion at the end of 2024 followed zero growth in the third quarter.
In annual terms, the final figure was slightly better than previously expected as UK growth hit 1.1 per cent.
Previous estimates said the UK economy grew by 0.9 per cent in 2024.
The revisions made to the earlier parts of the year suggested the UK economy was more resilient than previously thought.
“Today’s updated GDP estimates indicate that 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,” Grant Fitzner, the ONS’ chief economist, said.
Business investment grew by 1.8 per cent year-on-year, far higher than predictions which said there would be a decline of 0.7 per cent.
But figures also showed a fall of 1.9 per cent in the final quarter.
The UK’s trade account’s deficit also widened by £0.5bn in the last quarter as imports surged rose more than exports.
“Today’s deluge of data confirmed that the economy was weak even before the full effects of higher business taxes are felt and that a high household saving rate continues to restrain GDP growth,” Ruth Gregory, deputy chief UK economist at Capital Economics, said.