Are EU and UK doing well economically?
Introduction
latest economic data and forecasts show both the EU and UK are experiencing modest economic growth, though facing some challenges:
European Union:
The EU economy is showing signs of gradual recovery, but growth remains relatively subdued:
• In Q3 2024, GDP grew by 0.3% in the EU compared to the previous quarter.
• For the full year 2024, GDP growth is projected at 0.9% for the EU.
• Growth is expected to pick up to 1.5% in 2025 and 1.8% in 2026 as consumption and investment rebound.
• Inflation is forecast to decrease to 2.6% in 2024 and 2.4% in 2025, down from higher levels in 2023.
• The unemployment rate reached a record low of 5.9% in October 2024.
United Kingdom:
The UK economy is experiencing slower growth and recently emerged from a technical recession:
• GDP grew by 0.2% in August 2024, following no growth in July.
• The UK entered a recession in late 2023 with two consecutive quarters of negative growth.
• For the full year 2023, the economy grew by only 0.1%.
• GDP growth of 0.7% is forecast for 2024.
• The UK is still grappling with a cost of living crisis, with food inflation at 6.9% as of December 2023.
Conclusion
Both economies are growing, the pace of growth is modest. The EU appears to be on a slightly stronger footing with improving projections for the next few years, while the UK is facing more immediate economic challenges. Both regions are dealing with inflationary pressures and aiming for a gradual economic rebound in a challenging global environment.
