How data on GDP help to inform policy decisions

Gross domestic product (GDP) refers to an economy’s national income and changes in real GDP over time determine the rate of economic growth. Achieving economic growth is a key economic objective for the UK government. Later in this issue, Peter Smith explores how GDP is calculated. This article by David Horner discusses how GDP is used by governments to guide policy decisions

In June 2021, the Office for National Statistics (ONS) published its first estimate (for April 2021) of the UK’s monthly gross domestic product (GDP). This estimate shows the percentage change in GDP compared with the previous month.

As Figure 1 shows, at the time of writing the latest estimate was for a 2.3% increase in GDP since March 2021 and, if the estimate is accurate, shows that the UK economy had grown for the previous 3 months.