Home Business News Economy not doing as well as Sunak claims as it has ‘stalled’

Economy not doing as well as Sunak claims as it has ‘stalled’

12th Jun 24 9:10 am

According to the Office for National Statistics (ONS) in April the economy recorded no growth and, in the month, the gross domestic gross (GDP) flatlined compare to growth of 0.4% in March.

For the Prime Minister election campaign this is not looking good as Rishi Sunak has claimed that economy has improved under the Tories.

Next week the Bank of England (BoE) are to make their decision on interest rates and economists are predicting that the Monetary Policy Committee (MPC) are unlikely to lower rates.

Until there is cooling of the labour market then this progress will likely prevent the MPC from lowering interest rates.

During the first quarter of the year the economy grew by 0.6% which helped to pull the country out of the recession.

In the three months to April on a quarterly basis GDP grew by 0.7% compared to the three months to January this year.

Shadow chancellor Rachel Reeves said, “Rishi Sunak claims we have turned a corner, but the economy has stalled and there is no growth.

“These figures expose the damage done after 14 years of Conservative chaos.”

Suren Thiru, economics director at the Institute of Chartered Accountants in England and Wales, said, “Despite these disappointing GDP figures, a June interest rate cut looks improbable, with the Bank of England likely to be a little wary of shifting policy in the middle of a General Election campaign.”

Nicholas Hyett. investment manager at Wealth Club, said, “The market had low expectations for the UK economy in April, and it duly delivered.

“In an election month, where every data release will be being watched closely, there’s little here to change the narrative.”

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