- Economic growth measures the change in real GDP (national income adjusted for inflation; ONS call it chained volume measure of GDP)
- In 2013 – annual GDP in volume terms increased by 1.7% in 2013.
- In the past 12 months – between Q2 2013 and Q2 2014, GDP in volume terms increased by 3.2%
- The peak to trough fall of the economic downturn in 2008/2009 is now estimated to be 6.0%
- In 2013, GDP at market prices was £1,713,302 million (£1.7 trillion)
- Updated October 6th, 2014
Recent UK Economic Growth
Source: ONS IHYQ
Recent history of economic growth
- Since the recession of 1992 ended, the UK experienced a long period of economic growth – it was the longest period of economic growth on expansion. Also, the growth avoided the inflationary booms of the previous decades. However, the credit crunch of 2007-08 hit the UK economy hard and caused a steeper drop in real GDP than even the great depression of the 1930s. Helped by a loosening of monetary and fiscal policy, the UK experienced a partial recovery in 2010 and 2011. But, by Q1 2012, the UK was back in recession.
- The second double dip recession was caused by a variety of factors including European recession, lower confidence caused by austerity measures, continued weakness of bank lending and falling real incomes.
- Since the start of 2013, the UK economy has experienced positive economic growth – one of the relatively best performances in Europe. However, real GDP is still fractionally below it’s pre-crisis peak of 2007.
- The recovery has been stronger in the service sector than manufacturing and industrial output. There are fears the UK recovery is still unbalanced – relying on government spending, service sector and ultra-loose monetary policy.
It is worth bearing in mind that sometimes economic growth statistics get revised at a later stage.