David McNamara: UK economy moves back towards EU orbit

Reproachment with the EU a basis for closer relationship with its largest trade partner

British prime minister Keir Starmer with president of the European Commission Ursula von der Leyen. UK reproachment with the EU, including an emerging deal on alignment of food standards and fisheries access, could provide a basis for a closer relationship with its largest trade partner, using the cover of global trade uncertainty to undo some of the Brexit frictions.

Following several months of soft macro data, last week’s UK GDP data suggests something of an upturn in activity and raises the question of whether the UK economy has turned a corner. 

The GDP data showed a solid 0.7% gain on the quarter in Q1 2024, up 1.1% year-on-year.