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UK Economy Demonstrates Decline

The United Kingdom’s economic system showed an unexpected decline in January.

UK Economy Demonstrates Decline

The gross domestic product (GDP) of the mentioned country for the specified period fell by 0.1% on a monthly basis. The relevant information was published last Friday, March 14, by the Office for National Statistics. It was noted that the main factor impacting the January result was a contraction in the production sector.

At the same time, experts interviewed by the media predicted that the United Kingdom’s economic system would show growth of 0.1% in January.

Against the background of the publication of data on the dynamic of UK GDP, the pound sterling fell by about 0.15% against the dollar to trade at $1.293. At the same time, the pound sterling was flat against the euro.

Long-term government borrowing costs, which spiked to multi-decade highs earlier this year, increased. The yield on 20-year UK government bonds, known as gilts, added 2 basis points. The 30-year gilt yields were up by 4 basis points.

Services output in January showed an increase of 0.1% on a monthly basis. In December, this indicator rose by 0.4%. Production output in January fell by 0.9% month-on-month. In December, this indicator showed an increase, which amounted to 0.5%. Monthly construction output in January fell by 0.2% on a monthly basis. In December, this indicator showed a similar rate of downward dynamic.

In the fourth quarter of 2024, the United Kingdom’s economy grew by 0.1%. It is worth noting that this indicator exceeded preliminary expectations.

Serhii Mikhailov

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Serhii’s track record of study and work spans six years at the Faculty of Philology and eight years in the media, during which he has developed a deep understanding of various aspects of the industry and honed his writing skills; his areas of expertise include fintech, payments, cryptocurrency, and financial services, and he is constantly keeping a close eye on the latest developments and innovations in these fields, as he believes that they will have a significant impact on the future direction of the economy as a whole.