UK GDP grows by 0.6 per cent in Q2

LONDON, Aug. 15 (Xinhua) — Britain’s quarterly real gross domestic product (GDP) grew by 0.6 percent in the second quarter of this year, the Office for National Statistics (ONS) said on Thursday.

This followed a 0.7 percent increase in the first quarter of 2024.

Figures released by the ONS showed services rose by 0.8%, but this was offset by declines of 0.1% in the manufacturing and construction sectors.

Real GDP per capita is estimated to have increased by 0.3 percent in the second quarter, down 0.1 percent from the same quarter last year.

The data also showed growth in June 2024 was flat, although this was tempered by broad-based growth in the manufacturing sector that month.

Liz McKeown, director of economic statistics at the ONS, said the economy had recorded two consecutive quarters of strong growth, driven mainly by the services sector, including scientific research, IT and legal services.

However, UK Chancellor of the Exchequer Rachel Reeves issued a warning on social media platform X this morning, saying: “We have no illusions about the scale of the challenge we have inherited from the Conservatives after more than a decade of low growth and a £22 billion hole in the public finances.”

That claim was rebutted by former Conservative chancellor Jeremy Hunt in X, who said: “Today’s figures are evidence that the Labour government has inherited a growing and resilient economy. The chancellor’s attempt to blame her economic legacy for the decision to raise taxes – tax rises she always planned – will not go down well with the public.”