Britain's Economy: A Slow Recovery from Recession

Britain's economy saw a modest growth of 0.1% in the second quarter of 2024, falling short of the expected 0.2%. The BoE revised its annual growth forecast down to 1%. Finance Minister Rachel Reeves aims for a short-term economic boost, targeting the highest GDP growth among G7 for two years.

In the second quarter of 2024, Britain's economy experienced a growth of just 0.1%, much lower than the anticipated 0.2%, according to official data released on Friday. This modest increase follows a period of rapid recovery earlier in the year.

The Bank of England recently reduced its annual growth forecast for 2024 from 1.25% to 1%, but it anticipates a stronger economic performance in 2025. This optimism is partly driven by the ambitious budget plans introduced by finance minister Rachel Reeves, aimed at providing a short-term stimulus.

As Britain recovers from the pandemic and global energy crises, Prime Minister Keir Starmer is campaigning for a 2.5% annual growth rate—a feat not achieved since before the 2008 financial crisis. Reeves targets Britain's GDP growth to outpace its G7 counterparts over the next two years.

(With inputs from agencies.)