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

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, far ahead of France, which still struggles with high debt and political instability.

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

The latest figure is 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, particularly 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 was hit by shame in June when credit ratings agency Standard & Poor's downgraded its credit rating.

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

While the ratings agency praised French labor market reforms under President Emmanuel Macron, it expressed doubts about the government's ability to push through further reforms without an absolute majority in parliament.

“We believe political fragmentation contributes to uncertainty about the government's ability to continue implementing policies that enhance economic growth potential and address fiscal imbalances,” S&P wrote.

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

In a post on his social media channel X, veteran presenter and journalist Andrew Neil praised the performance of the British economy.

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

“Germany shrank by 0.1% in the second quarter, France grew by 0.3% and Italy by 0.2%. The EU grew by 0.3%.

“The UK's growth has outpaced every other major developed economy so far this year, growing 1.3% in the first six months of 2024, ahead of the US (1.1%), more than double France's 0.6%. Germany has barely grown at all this year (0.1%).

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

Earlier in August, the Bank of England cut interest rates to 5 percent, the first reduction in four years, which will give a new boost to the economy.