The UK economy shows signs of stagnation as the anticipated general election approaches, raising concerns among experts about the economic future.
- Figures from April released by the Office for National Statistics indicate no growth in the UK’s GDP, contrasting with earlier positive momentum.
- Despite a previous growth of 0.4% in March 2024, the GDP failed to maintain this trajectory in April.
- Service industries saw marginal growth, yet retail experienced a significant downturn in sales, contributing negatively to overall performance.
- Political leaders from major parties have reacted to these figures, each presenting differing views on the economic outlook.
The latest figures from the Office for National Statistics (ONS) revealed that the UK’s monthly real gross domestic product (GDP) showed no growth in April. This static performance emerged after a previous rise of 0.4% in March 2024. In the broader context of the three months leading up to April, the GDP increased by a mere 0.7% compared to the three months leading to January.
Service sector growth, while present, was modest at only 0.2% in April. This represents the fourth consecutive month of growth for the sector. However, the retail industry became a major concern as it registered the largest negative impact on service sector growth during the month.
Retail sales volumes dropped sharply by 2.3% in April, following a slight decline of 0.2% in March 2024. This downturn has been attributed, in part, to adverse weather conditions that reduced consumer footfall across retail establishments.
In response to the economic data, political figures have shared their assessments. The Conservative party released their manifesto claiming achievements such as reduced inflation, increased real wages, and overall economic recovery. Prime minister Rishi Sunak specifically highlighted plans to boost apprenticeship opportunities and support local high streets by adjusting business rates.
Conversely, shadow chancellor Rachel Reeves criticised the current state of the economy, asserting on social media that growth has stalled and countering claims of economic improvement.
With the general election scheduled for 4 July, these economic conditions and political assertions are poised to be pivotal to the campaign debates.
As the general election nears, economic indicators and political interpretations create a complex landscape for voters to navigate.
