The latest figures released are a significant milestone for the UK economy, indicating that the recession towards the end of last year was the mildest ever recorded. The government is likely to use these figures, along with a predicted decrease in the inflation rate to close to the 2% target, to argue that the economy is returning to normal. Bank of England Governor Andrew Bailey recently stated on the BBC that the economy has turned a corner, although it is not yet experiencing a robust recovery. Despite formal growth returning today, the economy has seen minimal growth over the past two years.
The battle over public perceptions regarding the strength of the economic recovery is expected to be a key focus of the upcoming general election campaign. Shadow Chancellor Rachel Reeves has criticized the government for being delusional and “gaslighting” the public about the economy’s strength. Both major political parties are positioning themselves to contest the election based on their economic policies.