The stagnant GDP growth in the UK is posing problems for the government as its monthly real gross domestic product (GDP) decreased by 0.1 percent in May 2023. The growth in March and April 2023 was nominal 0.2 percent.
The official data released shows that in the past three months, there has been practically no growth because of volatile politics and the impact of climate change as the UK recorded the hottest months this year.
The main decline in growth came from a decline in production. Production output dipped the monthly GDP for May, falling 0.6 percent, following a 0.2 percent decline in April 2023. This revised figure is an improvement from the initially reported fall of 0.3 percent, according to the Office for National Statistics (ONS).
In a year-on-year comparison, the monthly GDP for May 2023 fell by 0.4 percent, a stark contrast to the 0.5 percent growth recorded between April 2022 and April 2023.
The consolation for the planners was that the production output showed a 0.4 percent growth in the three months to May 2023, compared with the preceding three months. The rise in productivity came from the manufacturing sector which registered a growth of 0.8 percent, making it the most significant contributor to production output growth in that period.
UK economy shows no growth in 3 months to May 2023
