More signs of improvement

Figures from the UK's 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, England. Photo: AFP/VNA

Although rather "modest," this marks the second growth in the past seven months, offering hope that the UK economy may soon emerge from the technical recession that has lasted for the past two years.

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

The ONS statistics were released amid predictions that this year will again be a year of low growth in the UK. Earlier in March, UK Chancellor Jeremy Hunt announced the government 's spring budget package, centered on a 2% cut in national insurance (personal income tax) for British workers. This £10 billion ($12.7 billion) tax cut plan aims to garner support from British voters ahead of the election, as the ruling Conservative Party is trailing the Labour Party in national opinion polls.

The announcement of this budget package is seen as an attempt to shift the attention of the British public from the cost of living crisis to a more optimistic outlook on economic recovery and rising real incomes. Currently in the UK, taxes continue to rise to record highs, and public services are under considerable strain due to years of spending cuts. Economists argue that the government should invest in infrastructure and public services, including schools and healthcare, and reform the planning system to promote a green transition and build more housing.

THANH HANG

Source: https://www.sggp.org.vn/them-dau-hieu-khoi-sac-post730963.html