UK economy exits recession ahead of election
- GDP expanded by 0.6 per cent in the first quarter, the fastest growth in nearly three years
- Official data delivers a boost to Prime Minister Rishi Sunak ahead of an election this year
Britain exited a shallow recession with better-than-expected growth in the first quarter, official data showed Friday, in a boost to embattled Prime Minister Rishi Sunak ahead of this year’s election.
Gross domestic product expanded 0.6 per cent in the first three months of this year, the Office for National Statistics (ONS) said, noting strong growth in service industries and car manufacturing.
That beat market expectations of 0.4 per cent and marked the strongest performance since the fourth quarter of 2021, helping send London’s stock market to yet another record peak.
Sunak – whose governing Conservatives are trailing the main opposition Labour Party before a general election and suffered heavy losses in English local polls last week – has made economic growth one of his top priorities.
The economy had suffered two successive quarters of slight contraction in the second half of last year, meeting the technical definition of a recession on the back of elevated inflation and a cost-of-living crisis.