The United Kingdom’s economy has exited a brief recession in the first quarter with stronger-than-expected growth, revised data revealed on Friday, boosting Prime Minister Rishi Sunak ahead of next week’s general election.
The Office for National Statistics reported a 0.7 percent expansion in GDP for the first three months of the year, up from the previously estimated 0.6 percent growth. Market forecasts had anticipated no change.
The surprise improvement was driven by increased activity in the services sector, particularly in professional services, transport, and storage.
The positive development comes as Sunak’s Conservative Party trails significantly behind the Labour Party, led by Keir Starmer, in polls leading up to the national vote next Thursday.
“This is certainly encouraging news for whoever assumes the role of Prime Minister next week,” remarked Paul Dales, chief UK economist at Capital Economics.
Earlier this month, the ONS reported that the UK economy saw no growth in April, attributed in part to adverse weather conditions.
The economy had experienced slight contractions in consecutive quarters in the latter half of 2023, officially meeting the technical definition of a recession exacerbated by persistent inflation and a challenging cost-of-living situation.
Britain heads to the polls on July 4 in an election widely anticipated to result in a victory for Labour, potentially ending the Conservatives’ 14-year tenure under Sunak’s leadership since 2022.
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