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UK economy has recovered to pre-crisis levels
Written by: PaxForex analytics dept - Monday, 20 May 2013 0 comments
In the second quarter of this year, economic growth in Britain was 0.8%, which, according to experts, shows that the country’s economy has recovered to pre-crisis levels.In annual terms, GDP growth is 3.1%. According to the National Statistical Office of the United Kingdom, the data surpass parameters in 2008 by 0.2%, when the British economy was at its peak.
The main growth was observed in the service sector, which is an essential part of the British economy - almost 80%. Other industries, such as construction and manufacturing, still far from the success of 2008, but, as experts say, the dynamics of development gives cause for very favorable forecasts.
Experts from the International Monetary Fund (IMF) predicted that the UK economy will be the fastest growing among the Group of Seven. According to the forecast made by the IMF last week, its growth by the end of 2014 will be 3.2% instead of 2.8%, as
"Thanks to the British working capacity, today we have a very important milestone in the implementation of our multi-year plan for economic recovery." said media the British finance minister George Osborne.
However, Ed Boles, the head of the Treasury of the Official Opposition Shadow Cabinet said that British people do not become happier.
"Given that GDP per capita will not improve in the next three years, though the majority still believes that their standard of living is very low. It’s too early to make smug statements about economic success." Boles commented.
GDP per capita will not reach pre-crisis levels until 2017, experts say. This is partly due to the low productivity in some sectors and due to the population growth as a whole.
However, many leading economists in the UK underline that according to national circumstances in six years, the British economy has made impressive progress.