What's happened
The UK economy has officially emerged from recession, with GDP expanding by 0.6% in the first quarter of 2024. Prime Minister Rishi Sunak expressed optimism about the country's economic recovery, citing a return of confidence and strong growth. However, the National Institute of Economic and Social Research cautioned that the next government will likely need to raise taxes to sustain public services amidst sluggish economic growth.
Why it matters
The UK's emergence from recession and strong economic growth signal positive developments for the country, boosting confidence and potentially improving living standards. However, the need for tax increases to support public services highlights ongoing challenges in sustaining economic recovery and addressing fiscal pressures.
What the papers say
According to The Telegraph, Prime Minister Rishi Sunak expressed optimism about the UK economy's recovery, highlighting increased confidence and strong growth. In contrast, The Independent reported on the National Institute of Economic and Social Research's warning that the next government will likely need to raise taxes to maintain public services due to slow economic growth.
How we got here
The UK economy experienced a recession in the second half of 2023, but has now shown signs of recovery with GDP growth of 0.6% in the first quarter of 2024. The National Institute of Economic and Social Research's analysis indicates that slow economic growth may necessitate tax increases to sustain public services.
Common question
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