Britain’s economy continued its recovery from the recession last year with a 0.6% growth in the second quarter of 2024, following a 0.7% growth in the first quarter. While there were reports of decreased activity in June due to election uncertainty and strikes, the overall growth was led by the service sector. GDP per head of population also saw an increase, although still lower than pre-pandemic levels.
Chancellor Rachel Reeves highlighted economic growth as a national mission, while previous Chancellor Jeremy Hunt praised the resilient economy. The UK is expected to be the third-fastest growing G7 economy in the second quarter, though still lagging since the pandemic. Economists welcomed the GDP report, with predictions of a strong second half of 2024. However, the New Economics Foundation suggested the government invest more in infrastructure to support growth.
On the downside, UK productivity weakened, with a decrease in output per hour worked. The trade deficit also widened, with imports of goods exceeding exports. Despite these challenges, analysts at Investec remain optimistic about the UK’s economic prospects as an investment destination.
Meanwhile, Danish energy group Ørsted faced setbacks and a drop in share value due to project delays in the US. The company’s Revolution Wind project off the coasts of Connecticut and Rhode Island was pushed back from 2025 to 2026, leading to a financial impairment. Additionally, Aldi UK announced the end of its click and collect service, following a shift in consumer behavior away from online grocery shopping since the peak of the pandemic.
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