The UK economy emerged from recession at a faster pace than previously thought in the first three months of this year, revised official data showed on Friday, but the economic outlook remains weak ahead of next week's election.
British gross domestic product grew by 0.7% in the first three months of the year compared with the previous quarter, beating the initial estimate of 0.6% growth, the Office for National Statistics said. GDP fell for two consecutive quarters in the second half of 2023.
The figures were released less than a week before Britain goes to the polls in an election in which opinion polls suggest Keir Starmer's Labor party will comfortably defeat Prime Minister Rishi Sunak's Conservatives.
The long-term growth outlook remains weak, contributing to Sunak's electoral difficulties. Compared to the same quarter last year, GDP grew by only 0.3% compared to the initial estimate of 0.2%.
Household real disposable income – a measure of living standards – was 0.6% lower per head in the first quarter of 2024 than in the last quarter of 2019, the time of the last national election in England and just before the Covid-19 pandemic. .
“The solution to this massive fall in living standards will be the ultimate test of whoever wins the election,” said Adam Garlett, economist at the Resolution Foundation.
The UK economy has been struggling since the last election, hampered by the pandemic – which dealt a lasting blow to workers – but also by rising inflation following Russia's invasion of Ukraine and post-Brexit trade frictions.
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