GDP latest: UK economy unexpectedly grew at the end of last year, new figures show

Summary

The UK economy unexpectedly grew at the end of last year, new figures show
Growth in the last quarter of 2024 was 0.1%, following no growth in the three months before that
A bit better than expected - but the economy is still lacklustre, writes our chief economics correspondent Dharshini David
Chancellor Rachel Reeves says she's not satisfied - the Conservatives' Mel Stride says the government is "killing growth"
Today's figures show that, although overall output grew, GDP per head fell
The central mission of the government is to do something about the limping economy - so far it is failing, writes our political editor Chris Mason

Live Reporting

Edited by Owen Amos and Dearbail Jordan

Growth was likely in short supply at the end of 2024published at 06:48 Greenwich Mean Time
Dharshini David
Chief economics correspondent
Growth may be the government’s "number one mission" but it was likely in short supply in the final quarter of 2024.
Most economists expect the economic recovery to have run out of steam, with activity perhaps shrinking a touch, as Budget measures such as the rise in National Insurance contributions weighed on business and consumer confidence.
In addition, households may have been more cautious about spending as they grappled with higher housing costs - as borrowing costs remain far higher than just a few years ago.
The same factors could cloud the outlook: the Bank of England recently halved its growth forecast for this year to 0.75% from 1.5%.
And that doesn’t just spell a downgrade of prospects for businesses and households, but the chancellor too.
Poor growth tends to mean less money coming into the government, speculation is growing that she may announce next month that she’s curbing her ambitions for public spending growth.
Reeves will have to defend her choices if growth is feeblepublished at 06:42 Greenwich Mean Time
Ben Wright
Political correspondent
Image source, Reuters
If today’s figures confirm economic growth continues to bobble along at close to zero (or even show the economy shrank at the end of last year) expect brickbats from Labour’s political opponents.
After all, growth is the government’s number one goal.
The promises to raise living standards and invest in public services hinge on cranking out more growth than the UK has managed in recent years.
If today’s figures are feeble, ministers will have to explain why that isn’t happening and again defend their choices - notably the National Insurance rise for employers in last year’s Budget.
Ministers will argue there’s a long-term strategy: that policies from planning reform to ripping up regulations will kindle growth in time.
But the Chancellor Rachel Reeves has a more pressing short-term headache. Grisly growth figures could mean she has to consider a further public spending squeeze or tax rises later in the year.
A big morning of economic newspublished at 06:38 Greenwich Mean Time
Good morning from London.
At 07:00 GMT we will find out how much the UK economy grew - or didn't grow - in the last three months of 2024.
We’ll also get the monthly data for December - and a possible revision to the third quarter figures, which showed no growth at all.
Today's data will be keenly watched in Downing Street - as our political correspondent Ben Wright explains in our next post, the government says economic growth is its priority.