UK financial development August 2024

LONDON — The U.K. economy grew 0.2% in August on a month-on-month basis, flash figures published by the Office for National Statistics showed Friday.

Gross domestic product (GDP) came in line with the expectations of economists polled by Reuters, who had forecast growth of 0.2%.

The country’s economy flatlined in June and July, after previously recording modest but steady expansion in almost every month this year. Britain emerged from a shallow recession at the start of the year.

The reading comes as Finance Minister Rachel Reeves is set to deliver her Autumn Budget at the end of this month, with tax hikes and spending cuts expected as she tries to overcome an estimated £22 billion ($29 billion) black hole in the public finances. The Conservative opposition party, which led the country until snap elections earlier this year, deny the gap.

Reeves has also hinted that she may change the country’s debt rules to free up more cash to spur investment.

The government has said the plans are part of its vision for an era of “national renewal,” as it attempts to inject some optimism into the public pysche after painting a gloomy picture over the state of the economy.

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