Finally out of recession! UK stocks rally, FTSE 100 hits record high

The Office for National Statistics (ONS) said today (10) that the UK\’s gross domestic product (GDP) grew by 0.6% in the first quarter of this year, higher than analysts\’ expectations of 0.4%, the strongest growth performance since the end of 2021, and breaking away from the After two consecutive quarters of shrinkage in a technical recession, the pound-dollar (USDGBP) exchange rate rose 0.1% to $1.2537 after the data was released. The FTSE 100 index hit a new record high after the opening, breaking through the 8,400-point mark.

The Office for National Statistics (ONS) said today (10th) that the UK\’s gross domestic product (GDP) grew by 0.6% in the first quarter of this year, which was higher than analysts\’ expectations of 0.4%. It was the strongest growth performance since the end of 2021, breaking away from two consecutive quarters of contraction. Technical Recession Dilemma The pound-dollar (USDGBP) exchange rate rose 0.1% to $1.2537 after the data was released. The FTSE 100 index hit a new record high after the opening, breaking through the 8,400-point mark.
British Finance Minister Hunter told \”Sky News\” that the economic situation has undoubtedly been difficult in the past few years, but today\’s growth data proves that the economy is back to health for the first time since the new crown epidemic.
Hunter also said that the British economy is growing and that the outlook for the next six years will be the best among the G7 countries in Europe. Wages will grow faster than inflation, energy prices will fall, and the general labor tax cut will amount to 900 pounds (about NT$34,700).
Yael Selfin, chief economist at KPMG UK, said that the British economy will continue to grow for the rest of this year and that the worst period for the British economy is over.
Selfin pointed to falling inflation and rising wages as helping to repair some lost household income and support consumption.
Camarco senior adviser Alex Campbell said in a report that although today\’s data is positive and is the fastest quarterly growth rate since the end of 2021, the British economy is not out of the woods yet.
It is worth noting that the recovery is likely to be modest and year-on-year data are expected to remain stable. High interest rates will continue to put pressure on household and business spending.
The Bank of England (BoE) announced on Thursday (9th) that it would keep interest rates unchanged at 5.25% and predicted that the UK\’s future economic growth would be stronger while suggesting that a rate cut is imminent.
As for whether the British economy\’s fastest growth in two years will allow the BoE to cut interest rates early, experts believe that the chance is unlikely.
Ruth Gregory, deputy chief economist at Capital Economics, pointed out that the UK\’s economic growth performance is still quite weak, with only an increase of 0.2% compared with the first quarter of last year. However, the UK\’s strong growth last month may mean that the BoE does not need to rush to cut interest rates. The timing of the first interest rate cut will ultimately depend on for the next inflation and employment data.
In addition, the \”BBC\” also analyzed that many people may not be interested in economic growth in the first quarter of this year. After excluding factors such as inflation and population growth, per capita GDP fell by 0.7% from a year ago. The average income is 100 pounds (about NT$3,900) less than a few years ago. ).

Like (0)
Previous May 10, 2024 11:31 am
Next May 10, 2024 4:13 pm

Related posts