Policy needs to adjust following encouraging GDP data, says IEA expert

Thursday 13 May 2021 @ 11:35
Think Tanks

Julian Jessop, Economics Fellow at free market think tank the Institute of Economic Affairs, commented on the latest GDP and trade data from the Office for National Statistics

“The data was encouraging. Although the economy shrank in the first quarter, the decline in GDP was less than most had expected and growth bounced back in March. There was also further evidence of a recovery in UK trade with the EU (especially exports) after the rocky start in January.

“With more restrictions now being lifted and business surveys continuing to improve, activity is on track to return to pre-Covid levels as soon as the third quarter of this year.

“Policy now needs to adjust. Any additional stimulus – whether through government spending or money printing – is increasingly likely to distort the economy and fuel inflation, rather than boost growth.”

Notes to Editors

Contact: Emily Carver, Head of Media, 07715942731

IEA spokespeople are available for further comment.

GDP first quarterly estimate, UK: January to March 2021

Original article link: https://iea.org.uk/media/policy-needs-to-adjust-following-encouraging-gdp-data-says-iea-expert/

Share this article

Latest News from
Think Tanks

The King's Fund - System working lays the groundwork for improved dementia diagnosis but more to be done

18/04/2024 09:20:00

Integrated care systems are enabling the improvement of dementia diagnosis by supporting collaborative working across the health and care system, new research from health and care think tank The King’s Fund finds.

IEA - UK ranked second least authoritarian populist country in Europe, finds new index

17/04/2024 16:20:00

Hungary, Italy, and Greece demonstrate the danger of embracing populist policies Hungary, Italy, and Greece demonstrate the danger of embracing populist policies

IPPR - Rent and house price data reaction: Government needs to fix broken planning system says IPPR

17/04/2024 15:20:00

Dr Maya Singer Hobbs, senior research fellow at IPPR reacting to today’s house and rent price data

IFS - New tax year gives Chancellor more ‘headroom’ but doesn’t change the fundamentals

17/04/2024 14:15:00

The start of a new tax year causes a mechanical boost to the Chancellor’s ‘headroom’, but the post-election fiscal challenge remains daunting.

IEA - Bernanke Review Exposes Bank of England’s Failings

15/04/2024 10:20:00

Julian Jessop, Economics Fellow at the free market think tank, the Institute of Economic Affairs, commented on former U.S. Federal Reserve Chairman Ben Bernanke’s review of forecasting and communications at the Bank of England

Britain’s Housing Crisis has been Solved, Finds New IEA Report

12/04/2024 10:15:00

The year is 2035. Wages have outpaced house prices and rents for an unprecedented 10th year following housing reforms.

IPPR reacts to Labour’s plans to extend and speed up local bus franchising

12/04/2024 09:15:00

Maya Singer Hobbs, IPPR senior research fellow, reacted to Labour’s announcement of a plan to extend and speed up bus franchising, and other changes it says are aimed at improving local bus services

King's Fund - NHS performance stuck following another tough winter

11/04/2024 16:15:00

Danielle Jefferies, Senior Analyst at The King’s Fund, commented on the latest monthly NHS performance data

King's Fund - What is happening to life expectancy in England?

10/04/2024 13:25:00

There have been two turning points in trends in life expectancy in England this century. From 2011, increases in life expectancy slowed after decades of steady improvement, prompting much debate about the causes. Then, in 2020, the Covid-19 pandemic was a more significant turning point, causing a sharp fall in life expectancy, the magnitude of which has not been seen since World War II.

WIREDGOV