Published by Global Banking & Finance Review®
Posted on December 13, 2024
1 min readLast updated: January 27, 2026
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The UK economy contracted by 0.1% in October, contrary to predictions of growth. The BoE adjusted its 2024 growth forecast, and the UK aims for top G7 GDP growth.
(Reuters) - Britain's economy shrank unexpectedly by 0.1% in October, official data showed on Friday.
Economists polled by Reuters had forecast a monthly expansion of 0.1%.
Last month, the BoE trimmed its annual growth forecast for 2024 to 1% from 1.25% but predicted a stronger 2025 with 1.5% growth, reflecting a short-term boost to the economy from the big-spending budget plans of finance minister Rachel Reeves.
Britain's economic output has grown slowly since the COVID-19 pandemic. Only Germany, which was also hit hard by surging energy costs after Russia's invasion of Ukraine, has done noticeably worse among the largest advanced economies.
Earlier this month Prime Minister Keir Starmer confirmed that it was his ambition for Britain to have the fastest per capita growth in gross domestic product among the Group of Seven advanced economies.
(Reporting by Andy Bruce; editing by Suban Abdulla)
The article discusses the unexpected contraction of the UK economy by 0.1% in October and its implications.
The contraction was unexpected as economists had forecasted growth. Factors include post-pandemic recovery and energy costs.
The BoE predicts 1% growth in 2024 and a stronger 1.5% in 2025, influenced by budget plans.
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