The UK has avoided entering a triple-dip recession after the nation’s economy grew by 0.3% in the first three months of the year beating economists’ forecasts.
According to the Office of National Statistics the UK’s GDP is 0.6% larger than a year ago. The figures are good news for Chancellor George Osborne as it means a triple-dip has been averted but pressure will remain high for him to take a different strategy to improve growth.
The Chancellor released a statement saying; “Today’s figures are an encouraging sign that 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.”
The increase in GDP is believed to have been as a result of an improvement in the country’s dominant service sector which led the way on putting the UK back to growth. The service sector grew by 0.6% in the first quarter of 2013 and the production industry strengthened by 0.2%. The construction sector however continues to be a drag on the economy after the data showed that it shrank by 2.5%.
As a result of the positive data the Pound has strengthened against all of its most traded peers.
Current Pound Sterling (GBP) Exchange Rates
The Pound Sterling/US Dollar Exchange Rate is currently in the region of: 1.5403
The Pound Sterling/Euro Exchange Rate is currently in the region of: 1.1810
The Pound Sterling/Australian Dollar Exchange Rate is currently in the region of: 1.4935
The Pound Sterling/New Zealand Dollar Exchange Rate is currently in the region of: 1.8041
(Correct as if 09:47am GMT)
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