Mildest Recession on Record: UK Economy on the Road to Recovery, But Is It Enough for the Election?

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 likely to use these figures, along with a predicted decrease in inflation rate to near the 2% target, to argue that the economy is returning to normal. Despite formal growth returning today, the economy has seen minimal growth over the past two years.

The upcoming general election campaign is expected 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 despite formal growth returning today, it is not yet experiencing a robust recovery. Despite this, he believes that there are signs of hope for future growth prospects as long as certain conditions are met. He also highlighted that while inflation rates have decreased significantly, they still remain above target levels and need to be brought down further if we want sustainable economic growth in the long run.