The UK economy showed minimal signs of life at the end of 2024, with official figures confirming that GDP rose by just 0.1% in the fourth quarter, unchanged from previous estimates, according to the Office for National Statistics (ONS).
This marginal growth follows zero expansion in the third quarter, underlining a sluggish second half of the year for the UK economy. The flatlining performance comes as the Office for Budget Responsibility (OBR) downgraded its growth forecast for 2025 to 1%, down from 2%, citing “a lack of recent momentum and waning domestic confidence.”
Chancellor Rachel Reeves, who has pledged to deliver growth “further and faster,” now faces a challenging economic landscape. January’s GDP figures added to the gloomy outlook, with the economy contracting by 0.1%, driven by a downturn in manufacturing and construction, compounded by poor weather.
Business leaders are urging the government to act. Mike Randall, CEO of Simply Asset Finance, said: “Today’s GDP data shows resilience, with UK businesses holding steady despite uncertainty around upcoming changes to Employers’ National Insurance and the minimum wage.
“Now is the time for the government to translate policy into action – improving access to finance, incentivising investment, and ensuring a business environment primed for scaling and long-term success.”
With the Spring Statement now delivered, attention turns to whether the government’s policies can revive growth and restore confidence in the months ahead.
