UK Economic Growth Lags Behind Expectations

Britain's economic output grew by just 0.1% in November, falling short of the anticipated 0.2% forecast by economists. This modest rise follows an era of zero growth and uncertainty over new budgetary measures. The UK government now aims to achieve the fastest GDP growth among major economies.

Britain's economic performance for November showed a disappointing increase of only 0.1%, falling short of the 0.2% growth forecasted by experts, according to data released by the Office for National Statistics.

The new figures serve as an early indicator of gross domestic product following the implementation of Finance Minister Rachel Reeves' late-October budget, which increased the tax load on businesses at a critical time. The UK's economy has struggled, registering no growth in the third quarter amid budgetary uncertainty, with the Bank of England forecasting continued stagnation into late 2024.

The recent feeble growth has heightened concerns among investors, driving up government borrowing costs, which subsequently dropped after a surprise decrease in inflation. Nonetheless, the Labour government continues its ambitious target to lead GDP per capita growth among the G7 nations.

(With inputs from agencies.)