The United Kingdom's economy experienced a slight expansion of 0.1% between October and December, as reported by official figures. This growth, gauged through the Gross Domestic Product (GDP) calculation, offers a comprehensive insight into the nation's economic health. In a parallel development, mortgage rates have dipped below 4% for the first time since November, driven by heightened competition in the mortgage market. Meanwhile, the UK government is actively pursuing an exemption from US steel tariffs, with Business Secretary Jonathan Reynolds asserting a robust case for the exclusion of UK-made steel from these levies.
The GDP calculation remains a critical tool in assessing economic performance, providing a detailed picture of the nation's fiscal standing. The current 0.1% growth rate, albeit modest, signals a positive trajectory for the UK's economic health. Such growth is essential as it sets the stage for evaluating progress against measurable targets soon to be announced by Keir Starmer. These targets will serve as benchmarks for assessing government performance on key missions.
The recent reduction in mortgage rates marks a significant shift in the housing market landscape. Falling below the 4% threshold for the first time since November, this drop is attributed to intensified competition among lenders. This competitive environment benefits consumers by making homeownership more accessible and affordable.
In the realm of international trade, the UK government's strategic move to seek an exemption from US steel tariffs highlights a concerted effort to safeguard its domestic steel industry. Business Secretary Jonathan Reynolds has expressed confidence in the UK's strong case for tariff exclusion, which could potentially fortify trade relations and enhance economic stability.