Rachel Reeves says UK economy ‘beginning to turn a corner’

The economy of the United Kingdom is “beginning to bend a corner,” said the chancellor, after he grew more than expected in the first three months of the year.

Rachel Reeves told the BBC that the growth of 0.7% in the period from January to March was “very encouraging”, but Shadow’s chancellor, Mel Stride, said it was “a bit premature to be appearing the champagne corks.”

The growth figure was stronger than 0.6% that had a leg forecast, and was helped by increases in consumer spending and business investment.

The figures mark the period just before the United States imposed import tariffs and the taxes of the United Kingdom employer increased in April, and analysts warned that it was unlikely that the strong growth rate would continue.

The Labor Government caused the economy to promote its highest priority when it came to power last year, but its decision to increase the contributions of the National Employers Insurance (NI) was criticized by many companies that said it could affect growth.

The import tariffs of the United States are also expected to reach growth, with the International Monetary Fund recently degrading their forecasts for the global economy and the United Kingdom.

But Reeves told the BBC: “We are scheduled to be the fastest growing economy in the G7 in the first three months of this year.

“We still have more to do,” he added. “I absolutely understand that the cost of the living crisis remains real for many families, but today’s numbers show that the economy is beginning to bend a corner.”

Mel Stride criticized the increase in employers’ payments, qualifying it as a “job tax.”

“Work inherited the fastest growing economy in the G7, but its decisions have put that progress at risk,” he said.

Democratic liberal treasure spokeswoman, Daisy Cooper, said the data were “positive news”, but “there was no complacency time.”

The attached leader of Reforma UK, Richard Tice, said: “We still have to see the impact of Rachel Reeves”, April taxes increase in growth, it will not be beautiful. “

The National Statistics Office (USA) said that the Dominant Services sector of the United Kingdom, which covers companies in sectors such as retail trade, hospitality and finance, was the largest growth driver in the first three months of the year.

But analysts warned that growth was expected to decrease in the coming months, with Paul Dales in Capital Economics saying that the latest figures “could be as good as they do during the year.”

He said that the strong increase in GDP was “unlikely to be repeated, since much of it was due to the fact that the activity was presented in front of American tariffs and the increase in taxes of national companies.”

Dales pointed out that export volumes in the first three months of the year increased by 3.5%, after three consecutive quarterly decreases.

But Liz Martins, a senior economist from the United Kingdom in HSBC, told the BBC today that it was “quite applauded” by the figures.

“Business investment has increased almost 6% in the quarter and the service sector is also working well.

“So not only manufacturers sell to the United States to get ahead of tariffs.”

Annabel Thomas, executive director of Nc’nean whiskey distillery based in Scotland, says it is “reasonily with identity” about the perspectives for the United Kingdom.

The interest rates of the United Kingdom are expected to fall more this year “, and that really affects the money that people have in their pockets,” she says.

The business is growing in the US.

John Inglis is the founder of the exactform diamond tools manufacturer, who used 100 people and has a factory in the United States. He says that decisions about the future of the business have become very difficult.

“We have rates. We don’t know how we are going: 10% discount on a margin is enough.”

They say they are reluctant to transfer production to the United States, since they would be “putting people from the United Kingdom that they have very loyal work.”

As for the increase in the employers, he says he does not care “to put more … but everything is affecting the profits he needs to expand.”

“We are holding fire [on decisions] Because it makes the wrong decision now, everyone is without work. “

Last week, the Bank of England reduced the interest rates of the United Kingdom to 4.25% of 4.5% and insinuated that they could follow more cuts in the coming months.

But the strongest growth figure has mild the opinion of the markets on an additional interest rate rate this year.

Analysts suggest that there will be less reductions than what has been previously expected and that has affected the so -called exchange rates, which greatly influences the prices of the fixed rate mortgage.

Mortgage rates can now work again, although predictions are highly volatile. TSB has said that the introduction rates on Friday.