The British economy rebounded strongly in the first quarter of the year, marking an end to what economists termed a “technical recession,” Associated Press reports.
Official figures from the Office for National Statistics showed a growth of 0.6% in the first quarter, surpassing economists’ expectations of 0.4%. The uptick in economic activity comes after two quarters of modest declines, meeting the technical definition of a recession in the UK. The expansion was broad-based, with the crucial services sector showing notable strength. This growth was the strongest since the fourth quarter of 2021, when the economy was recovering from the severe contraction caused by the COVID-19 pandemic.
Despite this quarterly increase, the British economy has experienced minimal growth over the past year. High-interest rates, which reached 16-year highs of 5.25%, have been a significant factor hindering growth. However, there is hope that interest rates may soon decrease. Bank of England Governor Andrew Bailey suggested that a rate cut might be considered in June if inflation continues to trend downwards.
