Market Data
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The British economy is at a key juncture with its annual growth officially recorded in December 2024. Data from the Office for National Statistics (ONB) indicates that the economy grew by 0.4% in December, which, while impressive, was “broadly based,” with pubs thriving during the anticipation of the Christmas holiday. This economic momentum carried over into the fourth quarter, where the overall growth was the fastest in 2024, at 0.9%. However, the previous three months saw a slight dip compared to the previous fiscal year, while the quarter ended with the UK’s sixth consecutive quarter of growth.
The BoE’s-quarter growth forecast for 2025 is being adjusted downwards, with the central bank decreasing the growth target from 0.7% to 0.75% after its decision to cut its main interest rate to 4.5%. This adjustment, seen by many as a potential “good enough” move, may impact the move towards a new Labour government despite its popularity,’ as supporters worry about the government’s inability to deliver on growth as it once did during Labour’s tenure in July 2020.
Rachel Reeves, the UK’s economy advisor, has recently pitched a plan to rejuvenate long-term growth. The party has announced intentions to support initiatives like reinforcing a third runway at London’s Heathrow Airport as part of its efforts to invest in infrastructure and for businesses to expand. She has also pledged to build a Silicon Valley-like tech hub between the two London universities in Oxford and Cambridge, backed by the regeneration of Manchester’s Old Trafford Soccer Stadium and efforts to reset the UK’s post-Brexit economic relations.
Reeves emphasized that the government’s efforts will be “further and faster,” with the aim of “building again,” impacting the UK’s road, rail infrastructure, and energy sectors. She stated, “These barriers need to be removed for businesses and for economic recovery,” highlighting the challenges British consumers and businesses face in the new economic landscape.
The changes众手在经济展望中可能带来一些让人 围/core的变化，但同时也暗示着新的挑战。而经济复苏办公室的最新预测显示，政府正朝着”re growing”的愿景努力，尽管成功弥补了财政失衡带来的限制。
