In April, Britain’s economy showed no growth after exiting a recession in the first quarter, as per official data released Wednesday, just ahead of the upcoming general election in the country.
The zero growth in April followed a 0.4 percent expansion in March, according to the Office for National Statistics.
Britain goes to the polls on July 4, with the main opposition Labour party widely expected to win. This potential victory would end the 14-year rule of the Conservatives, currently led by Prime Minister Rishi Sunak.
“The stagnation in GDP in April doesn’t suggest that the economic recovery is over, but it’s not particularly good news for the prime minister three weeks ahead of the election,” observed Paul Dales, chief UK economist at Capital Economics research group.
Breaking down April’s output data, services grew by 0.2 percent, while production fell by 0.9 percent and construction declined by 1.4 percent.
After experiencing a short recession in the second half of 2023, marked by two consecutive quarters of slight contraction, the UK economy had shown growth in the first quarter of this year. This recession was attributed to elevated inflation, exacerbating a cost-of-living crisis.
In efforts to narrow the gap with Labour, led by Keir Starmer, Sunak unveiled his party’s manifesto on Tuesday, promising voters tax cuts and reduced immigration.
Sunak pledged to finance the tax cuts by tightening welfare payments to working-age individuals. This announcement came alongside official data showing a rise in British unemployment amidst increased earnings growth.
Inflation data is expected next week, coinciding with a regular Bank of England meeting where the main interest rate is anticipated to remain at a 16-year high.
