Economy hamstrung by sluggish growth
13 April 2023
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Energy and Environment
Economics
Housing and Planning
Commenting on news that the UK economy grew by less than 0.1 per cent in February, IEA Economics Fellow Julian Jessop said:
“The UK economy is still on track to dodge a recession, despite low growth in February. Activity was held back by widespread public sector and transport strike action, but the output of services provided by the private sector is continuing to recover.
“Early evidence suggests that the economy grew again in March and in the first quarter as a whole, probably by around 0.2-0.3 per cent.
“Nonetheless, that would be little to cheer. Simply beating the gloomy forecasts of organisations like the IMF is a pretty low bar. The UK economy risks being kept in the slow lane by a combination of high tax and spend policies, dysfunctional energy and housing markets, and a pervasive belief that the ‘government always knows best’.”
ENDS
Notes to Editors
CONTACT: media@iea.org.uk / 07763 365520
The mission of the Institute of Economic Affairs is to improve understanding of the fundamental institutions of a free society by analysing and expounding the role of markets in solving economic and social problems. The IEA is a registered educational charity and independent of all political parties.
“The UK economy is still on track to dodge a recession, despite low growth in February. Activity was held back by widespread public sector and transport strike action, but the output of services provided by the private sector is continuing to recover.
“Early evidence suggests that the economy grew again in March and in the first quarter as a whole, probably by around 0.2-0.3 per cent.
“Nonetheless, that would be little to cheer. Simply beating the gloomy forecasts of organisations like the IMF is a pretty low bar. The UK economy risks being kept in the slow lane by a combination of high tax and spend policies, dysfunctional energy and housing markets, and a pervasive belief that the ‘government always knows best’.”
ENDS
Notes to Editors
CONTACT: media@iea.org.uk / 07763 365520
The mission of the Institute of Economic Affairs is to improve understanding of the fundamental institutions of a free society by analysing and expounding the role of markets in solving economic and social problems. The IEA is a registered educational charity and independent of all political parties.
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