The UK economy grew 0.1% in the fourth quarter of 2024, avoiding a projected contraction and improving from zero growth in the previous quarter, according to preliminary data from the Office for National Statistics (ONS). The modest expansion was driven by gains in the services and construction sectors, though declines in production weighed on overall growth.
On the expenditure side, the economy faced declines in net trade and gross fixed capital formation, signaling weakness in business investment and trade activity. However, these were offset by a large increase in inventories, which helped stabilize growth.
While the 0.1% GDP increase in Q4 signals resilience, the UK economy continues to face headwinds from high interest rates, weak consumer confidence, and global trade uncertainties. Analysts will be closely watching Q1 2025 data to assess whether the economy can sustain growth or if further policy support is needed.
Source: Office for National Statistics
Markets Balance Between Relief and RiskGlobal markets have begun pricing in a more moderate geopolitical outlook, yet the underlying situation remains unsettled. Diplomatic overtures between the United States and Iran have shown a sense of guarded relief following weeks of heightened anxiety regarding energy flows and critical shipping lanes. Interestingly, the failure of disruptions in the Strait of Hormuz to ignite a total energy crisis has challenged traditional market expectations.
Detail Risk-On Mood Lifts Currencies and Metals (04.15.2026)Markets maintained a risk-on tone as expectations for renewed US–Iran negotiations continued to weigh on the dollar.
Markets shifted toward risk-on sentiment as easing geopolitical tensions and uncertainty around Federal Reserve policy pressured the U.S. dollar. EUR/USD climbed toward 1.18, reaching multi-month highs, while sterling also advanced to a seven-week peak.
Then Join Our Telegram Channel and Subscribe Our Trading Signals Newsletter for Free!
Join Us On Telegram!
