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 (UK). Photo: AFP/TTXVN

Although quite "modest", this is the second growth in the past 7 months, bringing hope that the UK economy can soon escape the technical recession that has lasted for the past two years.

Previously, during the last 6 months of 2023, the UK economy only grew in November with an increase of 0.2%, while the remaining months recorded negative or stagnant GDP growth. According to observers, the positive signal from the GDP in January 2024 will help ease the pressure on Prime Minister Rishi Sunak ahead of the general election taking place this year. A positive GDP report also sets a more favorable premise for the annual budget plan that the UK Government is expected to announce next March.

The ONS figures come amid predictions that this year is set to be another year of low growth in the UK. In early March, UK Finance Minister Jeremy Hunt announced the government 's spring budget, which focused on a 2% cut in national insurance (personal tax) for British workers. The £10 billion ($12.7 billion) tax cut is aimed at wooing 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 people from the cost of living crisis to a more optimistic outlook of economic recovery and rising real incomes. Currently in the UK, taxes continue to rise to record highs, and public services in the UK are also very stressed due to years of spending restrictions. Economists say the government should invest in infrastructure and public services, including schools and health services, and reform the planning system to promote the green transition and build more housing.

THANH HANG

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