FX.co ★ UK GDP Annual Growth Rate Revised Higher in Q4

The British economy experienced a 1.5% growth year-on-year in the final quarter of 2024, surpassing the initial estimate of 1.4% and marking an increase from 1.2% in the third quarter. This represents the most robust annual growth rate in two years. Notably, there were upward adjustments in government spending, now reported at 2.6% compared to the earlier figure of 2.1%, and in fixed investment, which increased to 2.2% from 1.7%. These changes are attributed to a significant 1.8% rise in business investment, counter to the initial projection of a 0.7% decline. However, household consumption underwent a slight downward revision to 1.2% from the prior estimate of 1.4%. Additionally, both exports and imports saw adjustments, with exports now at -3.5% from -4.2%, and imports increasing to 5% from 4.1%. For the entire year of 2024, the UK economy grew by 1.1%, an improvement from the earlier estimate of 0.9%, and a notable rise from the 0.4% growth recorded in 2023.