Chancellor Rachel Reeves responded to the unexpectedly positive monthly GDP figures for February, stating that while they were encouraging, the government remains vigilant and pragmatic in light of changing global conditions. The UK economy grew by 0.5%, defying expectations of a smaller increase. However, concerns remain over the impact of looming tariffs imposed by the US administration.
Liberal Democrat spokesperson Munira Wilson criticized the government’s response to the tariffs, calling for a stronger trade deal with the EU to offset the uncertainty caused by US actions. The care minister defended the cautious approach, emphasizing the need to act in the national interest amidst global trade disruptions.
While the growth figures were welcomed by some, shadow chancellor Mel Stride noted that the economy still faces challenges, attributing sluggish growth to Labour’s decisions. Economic adviser Kevin Hassett dampened hopes of tariff relief, stating that any deal to reduce tariffs would need to be extraordinary.
The unexpected growth in February has been seen as a positive development, with care minister Stephen Kinnock attributing it to stable government policies. However, concerns persist over the economic impact of looming trade tariffs and tax increases, with businesses facing uncertainty and consumers grappling with rising costs.
Overall, the UK economy’s unexpected growth in February comes amid a backdrop of global economic uncertainties and challenges, requiring a cautious and proactive approach from policymakers to ensure stability and growth.
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