The UK economy grew 0.3 per cent in January, according to official figures, rebounding following fears of a prolonged recession.

Britain’s gross domestic product (GDP), a key measure in economic performance, rose at the start of 2023, bouncing back due to factors such as the end to postal strikes and the return of children to schools.

Khalid Talukder, Co-Founder of DKK Partners, championed a ‘restored confidence’ for businesses in response to the news, with SMEs having the barriers removed to achieve growth in 2023.

Talukder said: “Halting an economic downturn is excellent news for business owners who suffered greatly towards the end of last year with budgets pulled and opportunities dwindling as a result of economic uncertainty. Businesses can now start to have restored confidence in the economy and get back out into the marketplace after a turbulent period.”

“SMEs are at the heart of the business economy and promote innovative technologies and services across the country. A growing economy removes the barriers for businesses, enabling them to confidently engage in the export market and international trading without the shroud of uncertainty.”

“However, we must be cautious as the economy is the same size as it was last year and must continue this positive momentum, so we don’t slip back.”

“The Chancellor’s budget next week should build on this growth, promoting further technological innovation and international partnerships to connect the UK with frontier markets. International collaboration is a key factor in business growth and additional policy in this area in Wednesday’s budget can provide the platform for businesses to thrive this year.” Talukder continued.

Chancellor Jeremy Hunt will give his Spring Budget on Wednesday 15th.

Darren Morgan, Director of Economic Statistics at ONS, said: “The economy partially rebounded from a large fall seen in December. The main drivers of January’s growth were the return of children to classrooms, following unusually high absences in the run-up to Christmas, the Premier League clubs returned to a full schedule after the end of the World Cup and private health providers also had a strong month.”

“Postal services also partially recovered from the effects of December’s strikes.”