Britain’s economy rebounded from a brief recession in the first quarter with stronger-than-expected growth, according to revised data released on Friday.
This development provides a boost to embattled Prime Minister Rishi Sunak just days before the general election.
The Office for National Statistics reported that gross domestic product grew by 0.7 percent in the first three months of the year, an upgrade from the previous estimate of 0.6 percent. Market expectations had predicted no change.
The modest improvement was primarily driven by the services sector, with notable increases in professional services, transport, and storage activities.
The positive economic news comes at a critical time for Sunak’s Conservative Party, which is trailing significantly behind the main opposition Labour Party, led by Keir Starmer, ahead of the nationwide polls set for next Thursday.
“This is certainly good news for whoever will be the Prime Minister this time next week,” noted Paul Dales, chief UK economist at research consultancy Capital Economics.
However, earlier this month, the ONS revealed that the UK economy had stagnated in April, with zero growth, partly due to wet weather conditions.
The economy had contracted slightly for two consecutive quarters in the second half of 2023, meeting the technical definition of a recession. This downturn was driven by elevated inflation, which has prolonged the cost-of-living crisis.
Britain will vote on July 4 in an election widely expected to be won by Labour, potentially ending 14 years of Conservative rule under Sunak, who has been in office since 2022.
