More signs of improvement

Figures from the UK Office for National Statistics (ONS) show that the country's Gross Domestic Product (GDP) increased by 0.2% in January 2024.

People shop at a supermarket in London (UK). Photo: AFP/TTXVN

Although quite "modest", this is the second growth in the past 7 months, bringing hope that the UK economy can soon escape the technical recession that has lasted for the past two years.

Previously, during the last 6 months of 2023, the UK economy only grew in November with an increase of 0.2%, while the remaining months recorded negative or stagnant GDP growth. According to observers, the positive signal from the January 2024 GDP will help ease the pressure on Prime Minister Rishi Sunak ahead of the general election taking place this year. A positive GDP report also sets a more favorable premise for the annual budget plan that the UK Government is expected to announce next March.

The ONS figures come amid predictions that this year is set to be another year of low growth in the UK. Earlier in March, UK Finance Minister Jeremy Hunt announced the government's spring budget, which included a 2% cut in national insurance (personal tax) for British workers. The £10 billion ($12.7 billion) tax cut was aimed at boosting support from British voters ahead of the election, as the ruling Conservative Party trails the Labour Party in national opinion polls.

The budget is seen as an attempt to shift the focus of the British people from the cost of living crisis to a more optimistic outlook for economic recovery and rising real incomes. Taxes continue to rise to record highs in the UK, and public services are under strain after years of spending restrictions. Economists say the government should invest in infrastructure and public services, including schools and health services, and reform the planning system to promote a green transition and build more homes.

THANH HANG

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