UK economy grows by 0.2% in January

In January, Britain’s economic growth met expectations, expanding by 0.2% according to data from the Office for National Statistics. Following a shallow recession in the latter part of 2023, this growth aligns with economists’ projections for a 0.2% month-on-month increase in gross domestic product. Despite initial recovery from the COVID-19 pandemic, the UK economy has faced challenges, including a surge in energy import costs due to the Russia-Ukraine conflict and high Bank of England interest rates. Recent figures reveal a contraction of 0.3% in GDP in the final quarter of 2023 and 0.1% in the preceding quarter, meeting the technical definition of a recession. With GDP in January 0.3% lower than the previous year, the data corresponds with economists’ expectations.