UK GDP increases 0.1% in November

The UK economy experienced a slight recovery in November 2024, with GDP growth of 0.1%, following two months of contraction. This growth was primarily driven by the services sector, although it fell short of analysts' expectations of 0.2%. Despite the positive outlook, concerns about stagnation persist, as GDP has only grown in two of the last six months, leading to criticism of Chancellor Rachel Reeves and the government's economic policies. The International Monetary Fund forecasts the UK will be the fastest-growing major European economy over the next two years, with a projected growth of 1.6% in 2025. However, the IMF also noted weaker growth in the previous year than anticipated, underscoring ongoing economic challenges. The recent drop in inflation to 2.5% is expected to ease government borrowing costs, providing some relief amid pressures from rising taxes and business uncertainty.