UK exits recession as economy bounces back

The United Kingdom’s economy has overcome recession earlier than expected in the first quarter of 2023.

The economy grew by 0.6 per cent between January and March, the fastest rate for two years, official figures showed.

Recall that last year, the UK economy slipped into recession after shrinking for two three-month periods in a row.

Prime Minister Rishi Sunak said the economy had “turned a corner”, but Labour said this was no time for a “victory lap”.

On Thursday, the governor of the Bank of England, Andrew Bailey, told the BBC that the UK was seeing a recovery, although it was not a strong one.

Interest rates have been at their highest for 16 years, meaning people are paying more to borrow money for things such as mortgages and loans, but savers have also received better returns.

The Bank on Thursday said that inflation, which measures the rate of prices rise, would fall close to its target level in the next couple of months. That had boosted expectations of a rate cut in June. However, the growth figures that were stronger than expected dampened those expectations.