The British economy saw strong growth in the first three months of the year, ending what economists had termed a “technical recession.” Official figures from the Office for National Statistics showed that the economy expanded by 0.6% in the first quarter, surpassing the 0.4% increase predicted by economists. This growth was seen across a range of sectors, indicating broad-based strength.
Despite this positive rebound, overall economic expansion has been sluggish over the past year. High interest rates have remained at 5.25%, which is the highest in 16 years, and have contributed to slow growth. Bank of England Governor Andrew Bailey has suggested that a rate cut could be implemented in June if inflation continues to decline, which would stimulate economic growth.
However, high interest rates have also had a dampening effect on borrowing costs and have helped curb inflation. Despite this, there is optimism about the future of the British economy as it continues to recover from its technical recession and moves towards greater economic stability.