UK economy is the fastest growing in G7, experts say

But economists warn first-half gains are unlikely to continue

- ALEXANDER BUTLER

Britain’s economy is on track to enjoy the fastest growth of any G7 country in the first half of the year, analysts say.

The Office for National Statistics said gross domestic product (GDP) increased by 0.6 per cent between April and June, in line with economists’ predictions. This totals 1.3 per cent of growth in the first six months of 2024, after Britain fell into recession in late 2023.

Although the figures predate the election, they will provide a boost for the prime minister, Sir Keir Starmer, and chancellor Rachel Reeves, who have made growth the government’s priority, while warning of “tough decisions” ahead, with some tax rises expected.

But experts said the same level of “gangbusters” growth is unlikely to be sustained in the second half of the year, and warned that the figures could convince the Bank of England to delay further cutting interest rates.

In June, no economic growth was recorded for the month as weakness in services was offset by improvements in the manufacturing sector, the ONS said. April also saw no growth recorded, which was put down to the impact of wet weather, but then May saw a 0.4 per cent boost to the economy.

ONS director of economic statistics Liz McKeown said: “The UK economy has now grown strongly for two quarters, following the weakness we saw in the second half of last year. Growth across the three months was led by the service sector, where scientific research, the IT industry and legal services all did well.