UK economy grows by 0.2% in April in bounce back – what it means for your money

THE UK economy grew by 0.2% in April, the latest figures from the Office for National Statistics (ONS) show.

It came after a 0.3% decline in March which was largely driven by a drop in the retail and wholesale sectors.

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Looking at the broader picture, GDP grew by 0.1% in the three months to April 2023.

The services sector grew by 0.3% in April 2023, following a 0.5% fall in March 2023, and was the main contributor to the growth in monthly GDP in April.

ONS director of economic statistics Darren Morgan said: “GDP bounced back after a weak March.

“Bars and pubs had a comparatively strong April, while car sales rebounded and education partially recovered from the effect of the previous month’s strikes.

“These were partially offset by falls in health, which was affected by the junior doctors strikes, along with falls in computer manufacturing and the often-erratic pharmaceuticals industry.

“House-builders and estate agents also had a poor month.”

Chancellor of the Exchequer, Jeremy Hunt said: “We are growing the economy, with the IMF saying that from 2025 we will grow faster than Germany, France and Italy. 

“But high growth needs low inflation, so we must stick relentlessly to our plan to halve the rate this year to protect family budgets.”

What does it mean for my money?

A healthy economy is one that is growing and not in recession so the latest figures should be good news for consumers.

A country is in recession if there are two consecutive quarters of Gross Domestic Product (GDP) falling.

The year is split into four three-month quarters.

The economy remained unchanged in the three months to March, which means a recession was avoided.

Recessions are bad news because it usually means jobs will be lost and wages will stall.

It can cause businesses to go into administration or bust too.

This, in turn, means the government gets less tax, which could mean cuts to public services and benefits such as Universal Credit. Tax rates might go up too.

The UK last went into recession in 2020 after the coronavirus pandemic hit, shutting down large parts of the economy.

How to protect your finances

If you’re worried about your finances, there are steps you can take to try and keep your cash safe.

Go through all your bank statements and accounts so you know exactly where your money is going each month.

Of course, there are bills that you can’t avoid paying – but that doesn’t mean you can’t cut back in other ways.

For example, you could save money by moving to a cheaper mobile phone tariff or axing subscriptions you don’t need.

When money is tight, it can be tempting to ignore debts – but this will only make your financial situation worse.

Stay on top of what you owe and always repay priority debts.

There are also plenty of organisations where you can seek debt advice for free.

These include:

You should also check what benefits you are eligible for.

Entitledto’s free calculator works out whether you qualify for various benefits, tax credits and Universal Credit.

If you don’t want to register, consumer group MoneySavingExpert.com and charity StepChange both have benefits tools powered by Entitledto’s data that let you save your results without logging in.

There is also emergency funding available for struggling households, which is dished out by local councils.

The Household Support Fund is designed to help those in most need with payments towards the rising cost of food, energy, and water bills.

Help available varies, but you could get free cash, food vouchers, and help for bills like rent and energy.

You could also get similar help from your council under the welfare assistance scheme.

This post first appeared on thesun.co.uk