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UK economy grew by 0.8%

Business, News | | Published: 10:30, Tuesday May 6th, 2014.

The UK economy grew by 0.8% in the first quarter of 2014, according to latest figures.

Official statistics showed gross domestic product (GDP) was now just 0.6% below its level before the economic crash of 2008.

The rise was slightly down on expectations but GDP was still 3.1% higher than the same period last year.

It was the first time there had been five successive quarters of growth since 2007.

Speaking on the day the statistics were released, on Tuesday April 29, Chancellor George Osborne said: “Today’s figures show that Britain is coming back – but we can’t take that for granted. We have to carry on working through our long-term economic plan.

“For the first time in a decade all three main sectors of the economy – manufacturing, services and construction – have grown by at least 3% in the last year.

“The impact of the great recession is still being felt, but the foundations for a broad based recovery are now in place.

“The biggest risk to economic security would be abandoning the plan that is laying those foundations.”

The Federation of Small Businesses in Wales welcomed the increase but repeated its call for Wales-specific data.
FSB Welsh Policy Unit Chair Janet Jones said: “While these figures paint an encouraging picture of growth in the wider UK, they actually tell us relatively little of what is happening in the Welsh economy.

“Both the UK and Scotland produce these valuable quarterly GDP statistics, yet the Welsh Government has yet to produce comparable statistics for Wales.

“With the impending devolution of business rates and other taxes to Wales the need for up to date economic statistics for Wales is now pressing.

“It is high time we had a proper understanding of how the Welsh economy is performing, and how changes to taxation may impact on that performance.”

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