Following our earlier blog http://wp.me/p2sVbW-rl on the potential of the UK economy falling into a triple-dip recession, the GDP figures present a huge sigh of relief on the under pressure Chancellor George Osbourne.
Figures show that the UK economy grew 0.3% for Q1 2013, better than the predicted 0.1% by many experts and economists.
The Office of National Statistics (ONS) reported that the growth was spearheaded by the service sector whilst the construction industry remains stagnant.
George Osbourne will certainly be relieved by the latest figures although he is far from escaping the radar in the coming months.
Shadow Chancellor Ed Balls has continuously called for a review of Osbourne’s fiscal strategy claiming that his current strategy would fail a basic high level school economics exam.
Q4 of 2012 resulted in the economy shrinking by 0.3%, however, given Osbourne’s recent budget he’ll be hoping for a significant improvement on growth for the duration of 2013.
As well as service industries seeing positive growth be achieved, the increased output in the North Sea’s oil and gas platforms perform well as did the rise in the mining and quarrying industries. All of which contributed to the poor figures achieved in Q4 2012.
Chancellor Osbourne’s immediate relief was made public on Twitter as @George_Osbourne tweeted, “Today’s figures are an encouraging sign the economy is healing. Despite a tough economic backdrop, we are making progress.”
Progress indeed but just how long will it last?