The UK economy has done better than the Eurozone’s, according to newly published economic data from the European Commission.
Despite widespread criticism of the British peoples’ choice for Brexit in 2016, at least on the economic front it seems to have resulted in better consequences than predicted.
In its spring 2024 Economic Forecast, the EC said the Eurozone was showing minimal growth after a prolonged period of stagnation and it said a recession was likely to have occurred in the second half of 2023.
Across the Channel, the UK produced twice the EU’s economic growth rate during the first quarter of this year, the EC report showed.
While Eurozone gross domestic product (GDP) expanded by 0.3 per cent in the first three months of 2024, UK GDP grew by 0.6 per cent.
Officials described the UK economy as “going gangbusters” after last year’s recession was followed by unexpectedly strong growth in the opening months of 2024, British daily The Telegraph reported on May 10.
The UK is experiencing its fastest growth in more than two years and that has raised hopes of a sustained period of expansion.
British average wages grew faster than inflation – which is predicted to be 3.8 per cent in 2024 and expected to be around 2 per cent in coming years – according to the Bank of England, while energy prices fall and tax cuts of about £900 kick in.
In the Eurozone, inflation is expected to fall from 5.4 per cent in 2023 to 2.5 per cent in 2024.
In addition, while UK unemployment numbers are about 4.3 per cent, the EU rate sits at 6.6 per cent.
Euro area #GDP +0.3% in Q1 2024, +0.4% compared with Q1 2023: flash estimate from #Eurostat https://t.co/izWea1piZq pic.twitter.com/lJhjbTupnT
— EU_Eurostat (@EU_Eurostat) May 15, 2024
