Britain’s economy recovered from a brief recession in the first quarter with stronger-than-expected growth, according to upwardly revised figures released Friday, boosting embattled Prime Minister Rishi Sunak ahead of next week’s general election.
The Office for National Statistics said that gross domestic product expanded by 0.7% in the first three months of this year, up from the previous estimate of 0.6%. Market expectations were for no change.
The surprising minor uptick was led by the services sector, with slightly higher activity in professional services, transportation, and storage.
The positive news comes as Sunak’s Conservatives lag the main opposition Labour Party, led by Keir Starmer, ahead of nationwide votes 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, the ONS stated earlier this month that the UK economy stagnated in April with no growth, but the performance was hampered by the bad weather.
The economy fell somewhat for two quarters in a row in the second half of 2023, matching the technical definition of a recession driven by high inflation that exacerbated a cost-of-living crisis.
Britain votes on July 4 in an election overwhelmingly projected to be won by Labour, ending the Conservatives’ 14-year hegemony, led by Sunak since 2022.
