In the News Teaching Activity – UK economy returns to growth (Oct 2024)

Good news about economic growth - the economy grew 0.2% in August after two flat months.

The UK economy grew by 0.2% in August, ending a two-month stagnation, according to the ONS. This boost comes ahead of Chancellor Rachel Reeves' tough upcoming Budget. Reeves welcomed the news, emphasising the government's focus on economic growth to improve the NHS and make life better for workers. Key sectors like retail, manufacturing, and construction all contributed to the growth. Despite the positive figures, concerns remain about the pace of growth, and a potential Bank of England rate cut is uncertain.

Economy grows in August after two flat months, in boost for Reeves | The Standard

1. Explain the benefits of economic growth.

2. Using the second chart in the article showing UK monthly economic growth (GDP) since 2016, calculate the percentage increase in economic growth since 2016.

3. Discuss how ‘a potential Bank of England rate cut‘ is likely to affect future growth.