Official figures released on Friday showed that the British economy experienced a strong bounce back in the first three months of the year. This growth put an end to what economists had referred to as a “technical recession.” The Office for National Statistics reported that the economy expanded by 0.6% in the first quarter, exceeding the 0.4% forecasted by economists. This growth was widespread across various sectors of the economy.
After two consecutive quarters of minor declines, the British economy showed signs of improvement. Despite this positive growth, the economy has only experienced minimal growth over the past year. This sluggish growth has been attributed to the high interest rates, which have been at 5.25%, the highest in 16 years.
There is optimism that the interest rates may be reduced in the near future. Bank of England Governor Andrew Bailey suggested that a rate cut could be implemented in June if inflation continues to decrease. While high interest rates have helped curb inflation, they have also had a negative impact on the British economy by making borrowing more expensive.