| Click for the Finfacts Ireland Portal Homepage |

Finfacts Business News Centre

 Irish Economy
 EU Economy
 US Economy
 UK Economy
 Global Economy
 Asia Economy


How to use our RSS feed

Follow Finfacts on Twitter

Web Finfacts

See Search Box lower down this column for searches of Finfacts news pages. Where there may be the odd special character missing from an older page, it's a problem that developed when Interactive Tools upgraded to a new content management system.


Finfacts is Ireland's leading business information site and you are in its business news section.


Finfacts Homepage

Irish Share Prices

Euribor Daily Rates

Irish Economy

Global Income Per Capita

Global Cost of Living

Irish Tax - Income/Corporate

Global News

Bloomberg News

CNN Money

Cnet Tech News


Irish Independent

Irish Times

Irish Examiner

New York Times

Financial Times

Technology News




Content Management by interactivetools.com.

News : UK Economy Last Updated: Jan 28, 2014 - 1:05 PM

UK economy grew by 1.9% in 2013 - - strongest rate since 2007
By Finfacts Team
Jan 28, 2014 - 12:54 PM

Email this article
 Printer friendly page

The UK economy grew by 1.9% in 2013, its strongest rate since 2007, according to the Office for National Statistics (ONS) today. GDP (gross domestic product) increased by 0.7% in the fourth quarter of 2013.

The largest contribution to the increase came from the services sector, which increased by 0.8%.The increase in GDP followed growth of 0.8% in Q3 2013. In the latest quarter there was widespread growth, with increases in three of the four main aggregates. Output increased by 0.5% in agriculture, 0.7% in production, 0.8% in services and decreased 0.3% in construction.

The UK's service sector - - which accounts for more than three-quarters of economic output - - rose by 0.8% in the fourth quarter, the ONS said, matching its performance in the previous quarter. And the manufacturing sector grew 0.9%.

Economic output remains 1.3% below its 2008 first quarter level.

"We've seen growth in most parts of the economy," said Joe Grice, chief economist at the ONS, while George Osborne, chancellor of the exchequer, said: "These numbers are a boost for the economic security of hard-working people. It is more evidence that our long-term economic plan is working.

"But the job is not done, and it is clear that the biggest risk now to the recovery would be abandoning the plan that's delivering jobs and a brighter economic future."

Ed Balls, Labour's shadow chancellor, said: "Today's growth figures are welcome and long overdue after three damaging years of flatlining.

"But, for working people facing a cost-of-living crisis, this is still no recovery at all."

GDP was 2.8% higher in Q4 2013 compared with the same quarter a year ago. GDP is estimated to have increased by 1.9% between 2012 and 2013.

There was an upwards contribution from the production sector, which grew by 0.7%, with manufacturing increasing by 0.9%.

The ONS said today that GDP in the UK grew steadily from 2000 until early 2008, at which point a financial market shock affected UK and global economic growth. Up until that point, services in the UK had continued to grow steadily, while production output had been broadly flat over the same period. Construction activity grew strongly in the early part of the decade and although there was a temporary decline in the mid-2000s, this was reversed by the end of 2007. The deterioration in general economic conditions during 2008/09 was more acute in the construction and production industries, but less pronounced in the services industries.

Economic growth resumed towards the end of 2009, but at a slower rate than the period prior to 2008. The services industries grew steadily, if slowly, during this period, with activity exceeding the level previously seen in early 2008 by Q3 2013. By contrast, production and construction activity grew in 2010 but did not sustain this growth, and as a result have not yet returned to their pre-downturn peaks of activity. Although there has been growth across all industrial groupings except agriculture (which accounts for less than 1% of GDP and is highly volatile), when comparing Q4 2013 with Q4 2012 the service industries remain the primary contributor to economic growth.

From the peak in Q1 2008 to the trough in Q2 and Q3 2009, GDP decreased by 7.2%. Previous economic downturns in the early 1980s and early 1990s did not see the same level of impact on GDP. In the early 1990s downturn, GDP decreased by 2.9% from the peak in Q2 1990 to the trough in Q3 1991. . From Q2 1979 to Q1 1981, a period which included a quarter of positive growth, GDP decreased by 5.9%; over five consecutive quarters of falling GDP beginning in Q1 1980, GDP decreased by 4.6%.

The figures came as the CBI, the UK's leading business lobby group, unveiled its new monthly Growth Indicator, which showed the volume of output in the three months to January grew at the fastest pace since late 2007.

John Cridland, CBI director-general, said: “The economy is growing and the recovery gathering momentum. This is good news, and we’re seeing improvement across many different sectors.

“Our new Growth Indicator echoes this building confidence, showing that output in last three months grew at the fastest pace since late 2007, with strong performances in business and professional services, and manufacturing.

“This is a strong platform for an even better year in 2014, and we expect the economy to continue to strengthen.”

Howard Sears, founder of  Astuta, a small business investment firm said: "The economy is back with a bang. After last week's strong jobs numbers, there is every reason to believe the economic recovery is in full swing.

"There is certainly a lot more confidence in the small business community. Companies are starting to invest for the future rather than protect against it.

"The recovery of the property market has certainly had a major positive impact on consumer sentiment. People are starting to spend where perhaps they would have saved a year or two ago.

"For the economic recovery to gain momentum, we still need to see more appetite from the banks to lend to slightly higher risk firms.

"Nobody wants to return to the days of lax criteria but there needs to be more realism around business lending. Many perfectly viable and financially strong SMEs are still unable to secure the finance they need to grow.

"While the economy may be back on song, many banks are still tone deaf to the unique demands of many companies."

Check out our subscription service, Finfacts Premium , at a low annual charge of €25

Related Articles
Related Articles

© Copyright 2011 by Finfacts.com

Top of Page

UK Economy
Latest Headlines
UK in 28th rank of 30 advanced OECD nations for health resourcing: Economist Intelligence Unit
Business on a Shoestring: Keeping startup costs low in UK and Ireland
UK "underlying growth has stopped"
41,000 London properties held by foreign companies - 90% in tax havens
UK GDP rose 2.6% in 2014 up from 1.7% in 2013
Northern Ireland private economy contracted in December 2014
Northern Ireland may have a 12.5% corporation tax rate from 2017
UK moves ahead on 'Google tax' despite criticism
PwC charged with "selling tax avoidance on an industrial scale"; indulging in "scams"
Income inequality damages economies; Rich-poor gap highest in 30 years
Cameron warns of risk of another global recession
Only 80,000 of 1.1m UK jobs added since 2008 were full-time employee positions
UK added 112,000 jobs in third quarter; Pay inches above inflation - first time in 5 years
Germany and UK agree to restrict 'patent box' tax incentives to local R&D
German retailer Aldi to create 35,000 new jobs in UK by 2022
UK GDP growth slowed in the three months to September
UK retail sales fell in September; Tesco, Debenhams, Foxtons report market stress
UK faces more austerity and less chance of tax cuts
Globalization, the underclass and the need for a new model - Part 2
Northern Ireland PMI shows sharp increase in activity
UK economic growth revised up - above pre-recession level
London world’s most expensive city for companies to locate employees
UK retail sales in August best performance since January
UK economy added more net jobs in past 4 years than rest of the EU combined
UK to announce stiffer penalties for offshore tax evaders
UK economy since launch of the euro in 1999
IMF says British pound overvalued
UK profit warnings reach highest first half total since 2011
UK GDP up 3.1% in 12 months to end Q2 2014; Economy overtakes pre-crisis 2008 peak
Wealthy foreign students overtake finance professionals as renters in prime Central London areas
UK attracts most inward investment projects since records began in 1980s
Trends in UK and US part-time and self employment since 2008
UK labour participation at 73% - highest in decade; US at 63% - lowest since 1978
More than 20,000 client names of Jersey tax haven bank leaked
UK house prices overtook their 2007 peak in Q2 2014
UK recovery continues at robust pace
UK employment rose again at a record pace in the three months to April
UK tax revenues rose to record in 2013/2014 with help from tax dodgers
Overseas visits to London in 2013, up 43.5% in 10 years
UK economy grew 0.8% in Q1 2014; Almost back to 2008 peak