UK economy grew by 0.8% in Q1 2014

UK economy grew by 0.8% in the first three months of 2014, slightly below expectations, the ONS has revealed.

Regarding the GDP as the main indicator of economic growth, the ONS revealed that that UK’s GDP was 3.1% higher in Q1 2014 compared with the same quarter a year ago, when it increased by 0.7%.

That is the strongest year-on-year change in GDP since the fourth quarter of 2007, when the financial crisis hit the economy. However, the UK economy is still 0.6% below its pre-crisis peak in 2008

Output has also increased in three of the four main industrial groupings within the economy in Q1 2014 compared with Q4 2013, the ONS revealed.

In order of their contribution, output increased by 0.9% in services, 0.8% in production and 0.3% in construction. However, output decreased by 0.7% in agriculture.

In Q1 2014 GDP was estimated to be 0.6% below the peak in Q1 2008. From peak to trough in 2009, the economy shrank by 7.2%, the ONS report added.The Bank of England governor, Mark Carney (pictured), has declared that Britain’s recovery is starting to “broaden out”, but added that he will not raise interest rates yet.

“There is every sign that the recovery is starting to broaden out and I would describe our attitude at the moment as prudently optimistic.

“What is important is that we see longer-term growth, and the view that we are getting from businesses here in Bristol is that the signs coming from the economy are consistent with improved longer-term growth,” Carney said speaking to business leaders from the South West of England.

 

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