The latest economic figures released in the UK indicate that the recession at the end of last year was the mildest ever recorded. The government is expected to use these figures, along with a predicted decrease in inflation rate to nearly 2%, to argue that the economy is returning to normal. However, despite formal growth returning today, the economy has seen minimal growth over the past two years.
The upcoming general election campaign is likely to focus on public perceptions about the strength of the economic recovery. 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.
Bank of England Governor Andrew Bailey recently stated on BBC that the economy has turned a corner, although it is not yet experiencing a robust recovery. Despite this progress, there are concerns about how long it will take for the economy to fully recover from its slowdown over the past two years.
