Free cookie consent management tool by TermsFeed Update cookies preferences

UK Economy will bounce back in 2024, Prime Minister Rishi Sunak says

UK Economy will bounce back in 2024, Prime Minister Rishi Sunak says
Wikipedia - Rishi Sunak Prime Minister Benjamin of the U.K.

In the wake of recent economic turmoil, the United Kingdom stands on the cusp of a significant turnaround.

Prime Minister Rishi Sunak, in a statement brimming with cautious optimism, has declared 2024 as the year the UK economy will "bounce back".

Forecasts for 2024 suggest a modest uptick in the UK's GDP growth, with projections indicating an increase of 0.8 percent, following a period of stagnation.

This anticipated growth comes after a challenging phase marked by the Covid pandemic and the subsequent energy crisis, which saw inflation rates soar to unprecedented levels.

This year will "prove to be the year that the economy bounces back", Rishi Sunak has told the BBC after figures showed inflation fell to its lowest level in almost two and half years.

"We have turned a corner after the shocks of the past few years," he said.

Sunak's confidence stems from a series of positive indicators, including a significant drop in inflation from over 10% in early 2023 to 3.9% by November, hinting at a stabilizing economy.

The Prime Minister has been vocal about his commitment to economic growth, a pledge that has remained central to his tenure.

In the interview with the BBC, the prime minister said things had started to look up.

"I do believe that at the start of this year we have turned a corner after the shocks of the past few years and we are in a new economic moment," he added.

Despite the optimistic outlook, the UK faces several challenges.

The Bank of England has warned of a 50-50 chance of a recession, and living standards are projected to be lower at the end of the parliament than at the start—a historical first.

Moreover, while inflation rates are decreasing, they are expected to remain above the government-set target until the end of 2025, maintaining pressure on households.

Pushed on rising mobile, broadband, and car insurance costs, the UK Prime Minsiter acknowledged there were still "challenges",

but argued the UK was "in a far better place than we were when I became prime minister because of our plan".

"My job is to make sure that we're helping, and that's what our tax cuts do," Sunak said.

Additionally, the prime minister said he was "not interested in Westminster gossip" over plots to oust him.

"What's important is the future of our country and people's financial security and the peace of mind that they rightly deserve and my job and what I am working every day to deliver is that peace of mind that there is a brighter future ahead," he added.

The public remains cautiously hopeful, with many expressing a desire to see tangible improvements in their day-to-day lives. On the political front, Labour's shadow chancellor Rachel Reeves has promised a "new chapter in Britain's economic history," emphasizing the need for economic growth to facilitate Labour's broader governmental ambitions.