In April, the UK economy saw a stagnation in growth, with a 0.4 percent expansion following zero growth in March. This came after the country emerged from a recession in the first quarter of the year, according to the Office for National Statistics.
With just three weeks until the general election, Prime Minister Rishi Sunak is facing tough times as the GDP stagnation in April may not indicate a full economic recovery. The recent data shows that services grew by only 0.2 percent while production and construction saw declines of 0.9 percent and 1.4 percent respectively.
In an attempt to bridge the electoral gap with Labour under Keir Starmer, Prime Minister Sunak promised voters tax cuts and reduced immigration in his party’s manifesto launch earlier this year. However, his plans to fund these promises by tightening welfare payments for working-age recipients have been met with criticism from some quarters.
The UK economy had entered recession due to contracted growth in the second half of 2023 caused by heightened inflation and an ongoing cost-of-living crisis. Recent data also revealed an increase in British unemployment alongside high earnings growth figures, adding to concerns about the state of the economy before the upcoming election.
Inflation data is expected next week, coinciding with a regular Bank of England meeting where interest rates are expected to remain at a 16-year high, which will further add pressure on households and businesses alike as they struggle to cope with rising costs.
Despite these challenges, there remains hope that with sustained efforts towards recovery and good policies implemented by both parties, Britain can overcome its current economic difficulties and move forward into a brighter future for all its citizens.
