UK narrowly avoids triple-dip recession

The latest official statistics have revealed that the UK economy expanded by a figure of 0.3% in the first quarter of the year, allaying fears that Britain was poised to plunge into a triple-dip recession.

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The growth figure surpassed earlier estimates from the National Institute of Social and Economic Research (NIESR) which outlined that the UK economy lifted by a figure of 0.1% in the three months to March.

Chancellor George Osborne argued that the upturn in GDP points to the fact that the UK economy is on the road to recovery.

“Today’s figures are an encouraging sign the economy is healing. Despite a tough economic backdrop, we are making progress,” he said.

“The deficit is down by a third, businesses have created over a million and a quarter new jobs and interest rates are at record lows.”

He added: “We all know there are no easy answers to problems built up over many years, and I can’t promise the road ahead will always be smooth, but by continuing to confront our problems head on, Britain is recovering and we are building an economy fit for the future.”

However, while the growth figure provides a marginal glimmer of hope that the UK economy is showing the first tentative sign of recovery; economic output still remains at 2.6% below the peak recorded in the first quarter of 2008.

This fact means the fate of the UK’s economy remains precarious, according to Howard Archer of IHS Global Insight.

“While GDP growth of 0.3% quarter-on-quarter is a cause for minor celebration, it does not fundamentally alter the picture of an economy that is struggling to develop even moderate sustainable expansion,” he said.

“We expect the economy to scratch out limited growth over the rest of the year, with GDP expansion seen limited to 0.8% during 2013.”

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Posted by: WarrenWilson Categories: Finance Tags: , , Comments Off on UK narrowly avoids triple-dip recession

0 Responses to UK narrowly avoids triple-dip recession

  1. avatar Gary says:

    Totally agree with Osbourne, the man seems to speak sense and is a realistic, there is no quick fix…