UK GDP proves recovery isn’t what it’s cracked up to be
28th April 2015 By: Ranko Berich
UK GDP – 28/04/15
This GDP data proves that the UK recovery is not all it’s been cracked up to be and the services sector alone is holding the economy together. The fact that the economy grew at all in the first quarter was purely due to the services sector, which expanded 0.5 per cent. Output from all three of the other major groups decreased, showing just how much the UK economy continues to rely on services.
However, there is a problem with this picture. If the other areas of the economy continue to flounder, service sector growth will be insufficient to maintain the growth rates seen over the last couple of years, when construction, agriculture and manufacturing were contributing to growth.
These results will be heavily politicised and the fact is that the coalition’s economic record is far from unassailable, which today’s data highlights. Although the economy has recovered from the recession, it has done so at a far slower rate than in the past. On top of this, living standards still haven’t improved for the majority of the population.
With the election campaign heating up, this is a powerful rap sheet that Labour has yet to bring to bear in a clear and persuasive manner.