Julian Jessop, Economics Fellow at the free market think tank, the Institute of Economic Affairs comments on data showing zero GDP growth in April
“The headline figure of zero growth in the UK economy in April is not as bad as it sounds. Activity in the services sector was still expanding at a decent pace, offset by what should be temporary falls in production and in construction (the latter hit especially hard by the wet weather).
“On the less volatile three-month on three-month comparison, the economy grew by 0.7%.
“Nonetheless, more needs to be done to sustain the recovery. The next government has to get serious about fixing the structural problems that are holding back growth, including the broken planning system and the excessive burdens of tax and regulation.
“The improvements in business and consumer confidence are also based on hopes that lower inflation will allow interest rates to be cut. If the Bank of England fails to deliver soon, the recovery could still be snuffed out.”
Notes to Editors
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.