The UK economy expanded by a modest 0.1% in the third quarter of 2024, falling short of the 0.2% growth forecast by economists surveyed by Reuters and the Bank of England (BoE),

according to official data released on Friday.

This marks a slowdown compared to the stronger performance seen in the first half of 2024 when the economy rebounded from last year’s mild recession. The BoE recently downgraded its annual growth forecast for 2024 from 1.25% to 1%, although it anticipates stronger growth in 2025 due to the anticipated economic stimulus from Finance Minister Rachel Reeves' high-spending budget plans.

Since the COVID-19 pandemic, the UK's economic recovery has been sluggish. Among the major advanced economies, only Germany has fared worse, as both nations grappled with surging energy costs following Russia's invasion of Ukraine.

Prime Minister Keir Starmer has set an ambitious target of achieving 2.5% annual economic growth, a rate not consistently attained since before the 2008 financial crisis. This goal was a central theme of his campaign for the July 4 general election.

Meanwhile, Finance Minister Reeves aims to make the UK the fastest-growing G7 economy in terms of per capita GDP for two consecutive years, signaling a focus on both growth and productivity in the government’s economic strategy. Photo by Tristan Surtel, Wikimedia commons.