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Suren Thiru: Floundering economy putting PM’s growth pledge at risk

Author: ICAEW

Published: 13 Jul 2023

Suren Thiru, Economics Director at ICAEW, responded to the UK GDP figures for May 2023, released by the Office for National Statistics today (Thursday 13 July 2023):

“This data confirms that the economy was floundering even before the impact of recent interest rate rises are fully felt as the extra bank holiday for the Coronation curbed output in May.

“While the economy may rebound in June, the significant squeeze on activity from high inflation, stealth tax hikes and rising interest rates means the Prime Minister may struggle to meet his pledge to get the economy growing.

“These GDP figures are unlikely to prevent another rate rise in August. However, given the long time lag between rate rises and its effect on the real economy, tightening further risks damaging our growth prospects by overcorrecting for past errors.”


Notes to editors:

Contact: ICAEW media office media.office@icaew.com, tom.mackintosh@icaew.com or 07866 853 841