Weak growth and rising inflation: the economy under May and Hammond

Theresa May has been prime minister for one whole year. How has the economy performed while she has been at the top?

GDP Growth

Theresa May started her term as prime minister on the 13th July 2016, slightly into the start of the year’s third quarter. During the period from July to September, the economy grew 0.5%, 0.1 percentage points less than it grew the previous quarter, according to Trading Economics.

Then, during the final quarter of the year, GDP increased 0.7%, an improvement on the previous quarter, and an equal increase to the fourth quarter of 2015.

In the most recent quarter for which data is available, the first three months of 2017, the economy performed poorly, growing only 0.2%, revised down from the slightly higher, albeit disappointing 0.3%, according to Trading Economics.

While these are poor results, it should be noted that GDP growth has remained roughly between 0% and 1% since after the economic crash.

source: tradingeconomics.com


Since Theresa May took over as prime minister, the inflation rate has been getting higher almost every month.

The inflation rate in July 2016 stood at 0.6% - below the Bank of England’s 2% target. By January 2017 it stood at 1.8%, and according to the Guardian, it then hit 2.9% this June.

The BBC’s Economics Editor Kamal Ahmed recently said that“It would be ridiculous to say that Brexit is not affecting the UK's course on inflation.” But he said that other factors were having an impact on the country’s inflation rate.

While weak economic growth and rising inflation may or not be the prime minister’s fault, if it continues then Conservatives will struggle to back up their message that they should be trusted with the economy.

source: tradingeconomics.com

Source of data: Trading Economics


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