UK Economy Improves Slightly

UK economy improvesThe U.K. Avoids Taking a Third Economic Downturn
Recession, recession, recession. That’s a word we’ve all heard too many times over the past several years. With tough times for economies all around the world lately, it is impossible to avoid hearing the word over and over again. However, things are looking slightly better for the U.K right now.

The Office for National Statistics has reported a 0.3 percent growth for the economy during the last three months. Experts were expecting the economy to improve, but not by this much.

You may be thinking that 0.3 percent is trivial: however, it is better than the 0.1 percent growth that economists were expecting. With this level of growth, the United Kingdom managed to avoid it’s third economic downturn since the 2008 recession.

The British pound has also increased in value as part of this economic peak, with the GBP reaching an equivalence of 1.5445 USD: that’s an improvement of 1.2 percent. However, it is unclear how steady this pattern of improvement is going to be.

Although they were glad to see a rise in the economy, many experts maintained that this increase was not a reflection of all parts of the economy. Looking closer at the trend, they noticed that the services sector and industrial production sector were the main reason that the economy had managed to improve. They also saw that the construction sector decreased some of these benefits. If it weren’t for this sector, maybe the percentage of growth would have been higher than 0.3 percent.

There are still many signs that the United Kingdom’s economy is weak, such as increasing inflation, lower living standards & wages, and a high unemployment rate (currently 7.9%).

While this unexpected growth is not significant enough to take the U.K. out of its recession, it is a good start. After all, substantial economic growth does not usually happen overnight. Either way, it gives everyone a bit more hope, and hope is always a good thing when dealing with economic difficulties.

For more on the recent upturn, please see this article on CNN.

Philip

5 Comments

  1. Good to hear. Things are getting better here in the states, too. I knew the economy was improving when I suddenly started getting slammed with credit card offers again. 😉

  2. That is good about the UK economy and I will be doing my part to help it along later this year when I visit for a couple of weeks!

  3. It’s definitely not much, but it is a start 🙂 Hopefully the economy keeps growing, exponentially from that little seed of growth! I’d like to see what effects we’ll see in the market place that stem from this increase.

  4. Some countries are doing better, some are doing worse… I actually wonder if this recession will ever come to an end. By the way, I’m sick of this word too 😀

    • I know what you mean: this recession seems to be dragging on forever. Having said that, I do think things are starting to improve and although many people are still struggling with debt, there doesn’t seem to be the same feeling of doom and gloom that there was a while back.

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