According to the Office for National Statistics, the UK economy's growth has slowed down in recent months despite an increase in August.
The strength of an economy can affect things such as the pay increase for employees and the tax that the government can collect to pay for services.
Rachel Reeves, the Chancellor of Australia, has warned that she will be forced to take "difficult decisions" in her Budget on 30th October.
The GDP measures all economic activity in a nation, including that of businesses, governments and individuals.
The UK publishes new GDP numbers every month. Quarterly figures, covering three months each time, are more important.
Many economists, politicians and business people like to see the GDP rise steadily.
This is because people tend to spend more money, create more jobs, pay more taxes and get higher wages.
If GDP falls, the economy shrinks - and this can be a bad thing for workers and businesses.
If the GDP drops for two consecutive quarters, this is called recession. This can lead to wage freezes and job loss.
The UK entered a recession in 2023 when the economy contracted in the final two quarters.
0.5% between April and the end of June was the external.
On August 1, the latest ONS monthly data showed that external GDP grew by 0.2%, after a zero-growth in June and July.
The International Monetary Fund has raised its UK growth forecast ahead of the Budget.
The influential global organization now expects that the UK will grow by 1,1% in 2024 compared to the 0.7% forecasted three months earlier.
This would place the UK at the top of the list of world leaders, albeit a little slower than previous periods.
Economic forecasts can be inaccurate. The IMF, UK government and other institutions have differed on previous predictions.
When GDP increases, tax revenue goes up because people are earning more and spending more.
The government can then choose to use the money on services such as schools and hospitals, or police.
These things can reverse when the economy shrinks or a country enters a recession.
Taxes are generally lower, so governments may choose to cut or freeze public spending. Or taxes may rise.
The Covid pandemic in 2020 caused the UK to experience the worst recession it has experienced in more than 300 years, forcing the government to borrow hundreds and billions of pounds for the support of the economy.
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