Will A New Parliament Bring Economic Success?

Edward Smith,  Co-Chief Investment Officer - Rathbones Investment Management
 
The last Parliament has not been an economic success, especially relative to other countries that experienced similarly grave external pressures.
Between the last election and the end of March, the UK’s inflation-adjusted GDP per capita – a measure of productivity and the major driver of living standards – has fallen (by 1.2%), which is unique among its peers.
Inflation-adjusted wages have barely grown, continuing the longest slump in the standard of living since the aftermath of the Napoleonic wars: they are still below the pre-2008 high, again a statistic that is unique among our peers.
 
So could a new Parliament alter the trajectory?
We’ll come back to the more profound structural problems in a moment. In the short-term, a cyclical upturn is already underway. In the second half of 2023, the UK joined 15 other advanced economies that have recently experienced a so-called ‘technical recession’ ...