UK economy slightly stronger than expected in 2024

A general view of the Bank of England in London (Yui Mok/PA via AP)

LONDON, United Kingdom — Britain’s economy grew slightly more than initially forecast last year, official data showed Friday, in a hint of good news for the government after it slashed its growth outlook for 2025.

Gross domestic product expanded 1.1 percent in 2024, up from an initial estimate of 0.9 percent, the Office for National Statistics (ONS) said in a statement.

The Labour government this week halved its growth forecast for 2025 as it outlined billions of pounds of spending cuts, including to disability welfare payments and government departmental budgets, to help mend public finances.

“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,” said ONS chief economist Grant Fitzner.

READ: UK set to detail plans to fix public finances

Awaiting take-off

Prime Minister Keir Starmer has made growth a top priority but the economy has failed to take off since Labour returned to power in July.

However, the revisions make “the UK’s mild recession last year even milder and the subsequent recovery even stronger,” said analysts at research group Pantheon Macroeconomics.

“That shows how much growth could improve if uncertainty eases back from its current elevated levels,” they added.

Alongside the growth revision, new ONS data showed British retail sales unexpectedly rose one percent in February, after also rising in January.

“Wage growth and the imminent uplift to the minimum wage may have left the consumer in a more positive frame of mind than had been feared,” commented Richard Hunter, head of markets at investment platform Interactive Investor.