John McDonnell MP, Labour’s Shadow Chancellor, commenting on today’s lower than expected GDP figures, said

“Today’s GDP figures reveal the threat to living standards under the Tories.

“Growth for the first three months of 2017 was only half of what was expected. It comes on the back of new forecasts last week from leading independent forecasters showing growth and earnings expectations slashed and inflation revised up.

“There is no hiding from the truth. The Tories’ economic plan has undermined the UK economy and is a threat to working people’s living standards.  

“This General Election is a choice between a Labour Party who will stand up for the many and a Tory Party which only looks after the privileged few.” 

Ends

Notes to editors:

1. UK GDP Q1 2017 was 0.3 per cent.

ONS, GDP, April 2017

https://www.ons.gov.uk/economy/grossdomesticproductgdp/bulletins/grossdomesticproductpreliminaryestimate/jantomar2017

2. The OBR were forecasting GDP growth for Q1 of 0.6 per cent.

OBR, Economic and fiscal outlook, March 2017, Table 3.2

http://budgetresponsibility.org.uk/efo/economic-fiscal-outlook-march-2017/

3. The most recent HM Treasury comparison of independent forecasts for the UK economy show the below.

GDP 2017

Independent median- 1.8%

OBR forecast- 2%

Difference- -0.2%

Average earnings 2017

Independent median- 2.4 %

OBR forecast- 2.6%

Difference- -0.2%

Inflation Q4 2017

Independent median- 3.1%

OBR forecast- 2.7%

Difference- +0.4%

GDP 2018

Independent median- 1.3%

OBR forecast- 1.6%

Difference- -0.3%

Inflation Q4 2018

Independent median- 2.5%

OBR forecast- 2.2%

Difference- -0.3%

Treasury, Forecasts for the UK economy: a comparison of independent forecasts, 19 April 2017

https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/609054/Forecasts_UK_Economy_April_2017.pdf