Faltering Growth Serves Reminder Of Stark Economic Challenge Facing Whoever Wins The Election

13th June 2024

The latest GDP data serves a reminder to whoever wins the next election that their central goal must be to end Britain's economic stagnation, the Resolution Foundation said today (Wednesday).

The economy did not grow in April, halting the momentum of 0.6 per cent growth in Q1 2024. Growth in the services sector slowed to 0.2 per cent - driven by faltering retail sales – while manufacturing and construction both contracted.

The data offers a snapshot of Britain’s wider stagnation challenge, says the Foundation. GDP per capita – the measure that tracks living standards most closely – has grown by just 4.3 per cent in total during the 16 years since the financial crisis, compared to 46 per cent in the 16 years prior to that.

James Smith, Research Director at the Resolution Foundation, said, "After a strong start to the year, falling retail sales and contracting manufacturing output have brought growth to a halt in April. The latest data offers a snapshot of Britain’s wider growth challenge, and should remind politicians that ending stagnation should be the central task of whoever wins the next election."