Newspaper article The Journal (Newcastle, England)

Analysts Cautious as UK's Recovery Hailed

Newspaper article The Journal (Newcastle, England)

Analysts Cautious as UK's Recovery Hailed

Article excerpt

Byline: Adrian Pearson Regional affairs correspondent adrian.pearson@ncjmedia.co.uk

George Osborne used a visit to Newcastle to welcome ocial gures showing Britain had nally emerged from its worst post-war downturn.

Gross domestic product grew by 0.8% in the second quarter, taking the size of the economy 0.2% above its pre-recession peak, gures from the Oce for National Statistics showed.

It marks the end of a period when GDP slumped to 7.2% below its prerecession levels by the middle of 2009. e stuttering recovery did not take ight until last year, when growth began to accelerate.

But Britain is now predicted to be the fastest growing major world economy in 2014. Yesterday, the International Monetary Fund raised its GDP forecast for the fourth time in a row to 3.2%.

e Chancellor said the return to the pre-crash peak was "thanks to the hard work of the British people".

But he added: "ere is still a long way to go - the Great Recession was one of the deepest of any major economy and cost Britain six years.

"Now we owe it to hardworking taxpayers not to repeat the mistakes of the past and instead to continue with the plan that is delivering economic security and a brighter future for all."

Shadow chancellor Ed Balls said it had taken Britain three years longer than the US to return to its pre-crisis peak.

He added: "With GDP per head not set to recover for three more years, and most people still seeing their living standards squeezed, this is no time for complacent claims that the economy is xed."

e gures showed that GDP was 3.1% higher in the second quarter compared with the same period a year ago - the highest such year-on-year increase since the last quarter of 2007.

e 0.8% growth for the second quarter, which was widely forecast, was primarily driven by the services sector, which accounts for three-quarters of output, and had already surpassed 2008 levels. …

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