Low growth highlights need for reform
13 July 2023
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In the Media
In the Media
Trade, Development, and Immigration
4 November 2024
Commenting on GDP figures showing that the UK economy contracted in May, Economics Fellow at the free market think tank, the Institute of Economic Affairs Julian Jessop, said:
“The 0.1 per cent fall in economic activity in May was not as big as feared, given the hit from the extra Bank Holiday, but the bigger picture remains weak. There was no growth in the three months to May and monthly GDP is just 0.2 per cent above its pre-COVID level.
“The UK is at least dodging the sharp recession that many were predicting last year, helped by the continued strength of the labour market. But this could simply encourage the Bank of England to raise interest rates further, increasing the risk of overkill.
“Economic policy needs a reboot with a clear plan for growth, based on structural reforms that boost productivity. This means fixing our broken planning system, cutting burdensome red tape across the economy, and lower and simpler taxes.”
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 0.1 per cent fall in economic activity in May was not as big as feared, given the hit from the extra Bank Holiday, but the bigger picture remains weak. There was no growth in the three months to May and monthly GDP is just 0.2 per cent above its pre-COVID level.
“The UK is at least dodging the sharp recession that many were predicting last year, helped by the continued strength of the labour market. But this could simply encourage the Bank of England to raise interest rates further, increasing the risk of overkill.
“Economic policy needs a reboot with a clear plan for growth, based on structural reforms that boost productivity. This means fixing our broken planning system, cutting burdensome red tape across the economy, and lower and simpler taxes.”
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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