The UK economy has emerged from recession, registering a 0.6% growth in the first quarter of 2024, which marks its most robust expansion in over two years. This development has rejuvenated the stock market, with the FTSE 100 index hitting a record high of 8431, led by gains in mining stocks such as Glencore and contributions from other sectors including telecommunications and fashion.

International Airlines Group (IAG), the parent company of British Airways, reported a substantial rise in its first-quarter profits to 68 million euro, driven by lower fuel costs and increased demand in leisure travel. The company’s total revenues escalated to 6.4 billion euro. Chief Executive Luis Gallego expressed optimism for the future, particularly for the upcoming summer travel season.

Amidst this economic uplift, speculation about potential interest rate cuts has intensified, fueled by statements from Chancellor Jeremy Hunt. He suggested that such a move could alleviate the financial burdens on households, particularly those with mortgages. The current interest rate stands at 5.25%, with the Bank of England maintaining this rate to manage inflation despite the positive GDP growth.

This financial recovery and the upturn in key economic indicators come after a challenging period marked by two consecutive quarters of GDP decline at the end of 2023. While the government views this rebound as a sign of successful economic strategy, opposition figures urge caution, highlighting the continued pressure on household finances.