Although GDP posted its smallest quarterly rise since 2012 in the first quarter of this year, we doubt that the economy is on the cusp of a renewed slowdown. The business surveys suggest that Q1’s 0.3% rise will be revised up and/or that quarterly growth will soon revert to rates of closer to 1%. Indeed, there are few signs that uncertainty about the result of Thursday’s general election is harming the economy. Admittedly, the hung parliament that looks highly likely could lead to a more prolonged period of political uncertainty – but even that need not damage the economy significantly. We continue to think that the economy this year will manage to grow at a similar rate to last year’s 2.8% growth.
Become a client to read more
This is premium content that requires an active Capital Economics subscription to view.
Already have an account?
You may already have access to this premium content as part of a paid subscription.
Sign in to read the content in full or get details of how you can access it
Register for free
Sign up for a free account to:
- Unlock additional content
- Register for Capital Economics events
- Receive email updates and economist-curated newsletters
- Request a free trial of our services