THE UK economy grew slightly in the last three months of the year.
The Office for National Statistics (ONS) said Gross Domestic Product (GDP) 0.1% in the three months to December.
The news comes after the economy grew by 0.3% in November after contracting in October and September.
Economists broadly predicted that the economy would grow by 0.1% in the quarter.
GDP is one of the main indicators used to measure the performance of a country’s economy.
When it goes up, it means the economy is doing well. When it falls, it means the economy has shrunk.
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It comes amid a tricky time for everyday Brits, with the nation seeing the biggest drop in real household income per head in the G7 between July and September last year.
Earlier this week, The Sun reported that a new report says millions of hard-up families will never see their living standards double despite working harder.
Typical disposable incomes from lower-income households doubled in the four decades to the mid-2000s – but it will now take a staggering 137 years to hit that level.
Meanwhile, unemployment in the UK remains high, with the latest figures showing it hit its highest level since early 2021 when the country was still grappling Covid-19 and lockdowns.
What it means for your money
GDP measures the economic output of companies, individuals and Governments.
If it is rising steadily, but not too much, it’s a sign of a healthy and prosperous economy.
This is because it usually means people are spending more, the Government gets more tax and businesses get more money which then means pay rises for workers.
When GDP is falling, it means the economy is shrinking which can be bad news for businesses and workers who face pay cuts or even losing their job.
The Bank of England (BoE) also uses GDP and inflation as key indicators when determining the base rate.
This decides how much it will charge banks to lend them money and is a way to try to control inflation and the economy.
If GDP is low, the BoE cuts its base rate in order to encourage people to spend and invest money.
If it is higher, the BoE may keep its base rate higher in order to keep inflation in check.