UK avoids triple-dip recession

The Momentum UK Team 25 April 2013

The Office of National Statistics (ONS) has confirmed that the UK's Gross Domestic Product (GDP) has risen by 0.3%, therefore avoiding its third recession in five years.

The news may offer encouragment to consumers, businesses and investors alike as there had previously been fears that the UK was about to enter its third recession in five years, the so called "triple-dip" recession.

Since the onset of the financial crisis in 2008, the UK economy has remained stagnant, however the ONS figures shows that the results are the strongest year-on-year increase since the end of 2011.

The ONS figures shows that the UK’s GDP had risen by 0.6% compared with the first three months of 2012.

Strong growth within the services sector and a resurgence in North Sea oil and gas output has been largely attributed for the latest round of growth.

Chancellor George Osborne said:

"Today's figures are an encouraging sign the economy is healing. Despite a tough economic backdrop, we are making progress. The deficit is down by a third, businesses have created over a million and a quarter new jobs, and interest rates are at record lows.

"We all know there are no easy answers to problems built up over many years, and I can't promise the road ahead will always be smooth, but by continuing to confront our problems head on, Britain is recovering and we are building an economy fit for the future," he added.

In the wake of the loss of the UK’s triple-A rating, and the International Monetary Fund calling a rethink on the government's current austerity programme the latest figures may well act as reassurance.

However, critics of the government continue to argue that despite the most recent bounce in GDP, the overall picture is one of limited growth and declining infrastructure.

Shadow financial secretary to the Treasury, Chris Leslie, said low growth "isn't good enough".

"After nearly three years of flat-lining, we need to see decisive evidence that a strong and sustained recovery is finally underway," he said.