The UK`s economy is seeing signs of positive growth. It is reported that the economy grew by 0.8% in the first quart of 2014. This is now the fifth period of continual positive growth, which has been overseen by the conservative government. It is the longest run of positive growth since the financial crisis in 2008.
Gross Domestic Product measures an economies activity and if it has increased or decreased in size. However the Office of National Statistics has explained the economy is only 0.6% smaller than its highest peak in 2008.
The Chancellor George Osborne has stated “Britain is coming back”. However has warned that Britain`s biggest risk would be to abandon the plan of prosperity and restraint.
The US and Germany economies have now surpasses their pre-recession growth peaks, the UK is still not ahead of its economy peak from 2008.
However the UK did suffer from server weather which would did have an impact on large industries such as agriculture. Agriculture dropped by 0.07% as a direct result to the server weather the UK faced earlier in the year.
Further good news is the International Monetary Fund explained that the UK is to the most impressive performing economy from the world`s largest economies in 2014 with growth forecasted to be 2.9% for the 12 month term.
Update June 2016:
The UK Economic Outlook has seen a 2.2% rise in real GDP growth in the first quarter of the year giving the UK the 2nd fastest growth rate in the G7 membership. Figures for the first quarter also show a 3%
consumer spending growth with inflation standing at 0.5 percent.
Although our economic recovery has been relatively slow since mid-2009, it is still growing at a faster rate than most of the other G7 member economies over the same period. Consumer spending has remained strong and many economists put this down in part to lower global oil prices meaning less cost at the petrol pumps for British consumers.
Financial experts have mixed outlooks globally for the rest of the year with the unknown effects of the EU Referendum, as well as the continued recessions in Brazil and Russia, plus a slowdown of growth in China.
Many economists have predicted an average growth in UK GDP of just over 2 percent during 2016, mainly driven by consumer spending. This will be helped by a combination of low food prices and energy bills being kept down.
The Capital city of London is expected to continue to lead the UK recovery with growth levels predicted to be around 3 percent for this year, but other regions across the country are also expected to show growth levels between 1.4 to 2.3 percent overall by the end of the year.
Long-term views held by economists predict that inflation will remain low for now, but may see a small rise in rates over a gradual period as we head towards 2020.
With Government targets set to clear the budget deficit before 2020, we may see some further drag on the economy due to fiscal tightening of budgets, but it is thought that the strength of the private services sector will help to offset this with continued job growth and productivity.
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