UK economy has best growth since 2007

Huw Oxburgh
Authored by Huw Oxburgh
Posted: Tuesday, January 28, 2014 - 13:48

The UK economy has had its fastest growth since 2007,with UK GDP growing by 1.9% of in 2013 according to a report from the Office for National Statistics (ONS).

GDP used as the primary measure of a country’s economic growth, grew by 0.7% in the last quarter of 2013, down slightly on the 0.8% growth seen in the third quarter.

While growth is at the highest it has been for several years it is still below pre-recession levels.

Most of the main industrial areas of the UK also saw increased output in the last quarter with only the construction industry, which accounts for less 8% of GDP, experiencing a slight slump.

While agriculture, production and the service industry all saw an increased output, not all areas experienced as large a rise as in the previous quarter.

The UK's service sector - which makes up more than three-quarters of economic output - rose by 0.8% in the fourth quarter matching its performance in the previous quarter.

The largest contributions came from business services & finance, which contributed 1.3% and distribution, hotels & restaurants, which contributed 0.8% to total growth.

The figures within this release are estimates and are on a seasonally adjusted basis. The earliest period open for revision in this release is October 2014.

Other financial forecasters are now reporting increased estimates for next year’s growth

Ed Balls MP, Labour’s Shadow Chancellor, responding to today’s GDP figures, said: "Today’s growth figures are welcome and long overdue after three damaging years of flat lining. But for working people facing a cost-of-living crisis this is still no recovery at all.

"Wages are now down £1600 a year after inflation under David Cameron and tax and benefit changes since 2010 have left families worse off by an average of £891 this year.”

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