Emmanuel Macron humiliated as UK economy growing ‘twice as fast as France’ | World | News

The UK has the fastest growing economy in the G7 this year and is way ahead of France, which continues to be plagued by high levels of debt and political instability.

New data for the second quarter of the year show the UK economy grew by 0.6 percent, while France managed just 0.3 percent.

The latest figure was in line with forecasts and follows a 0.7 percent increase in the first three months of this year.

Growth was led by the services sector, in particular the IT industry, legal services and scientific research.

Liz McKeown, director of economic statistics at the Office for National Statistics, said: “The UK economy has now grown strongly for two quarters, following the weakness we saw in the second half of last year.”

France suffered the ignominy of having its credit ratings cut in June by the agency Standard & Poor’s.

The agency lowered France’s credit rating from AA to AA−, citing larger-than-expected deficits and political fragmentation as reasons for the downgrade.

While lauding past French labour-market reforms undertaken under President Emmanuel Macron, the rating agency expressed doubts on the government’s ability to make further reforms without an absolute majority in the parliament.

“We believe political fragmentation adds to uncertainty regarding the government’s ability to continue implementing policies that increase economic growth potential and address budgetary imbalances,” S&P wrote.

The budget deficit is forecast to remain above three percent of gross domestic product into 2027, the agency said.

In a post to his X social media channel, veteran broadcaster and journalist Andrew Neil hailed the performance of the UK’s economy.

“UK outperformed France, Germany and Italy in the second quarter of 2024,” he wrote.

“Germany shrank 0.1% in Q2, France grew 0.3% and Italy by 0.2%. EU grew 0.3%.

“UK growth has outpaced every other major advanced economy so far this year, growing by 1.3% in the first six months of 2024, ahead of the US (1.1%), more than double French 0.6%. Germany has barely grown so far this year (0.1%).

“Italy and Canada were 0.5% and 0.9% respectively. Remind me again, Mr Sunak, why you went for a July 4th election.”

Earlier in August, the Bank of England trimmed interest rates to 5 percent in its first cut for four years in another boost for the economy.