The recession is finally over, according to today’s figures from the Official Gross Domestic Product (GDP) with the highest amount of growth in the UK economy by 1.0% within the last three months between July to September, thanks to the Olympics and Paralympics games, but the Coalition must not get carried away here. There are of course some negatives to this as well as positives. Prime Minister David Cameron has stated the obvious and said, “We still have a long way to go and there are still difficulties ahead, but I think these figures do show that we are on the right track, we have got the right approach.”
Ed Balls, the shadow chancellor, said the figures were good news but stated that the economy now is the same as it was a year ago. “A one-off boost from the Olympics is welcome but it is no substitute for a plan to secure and sustain the strong recovery that Britain desperately needs if we are to create jobs, get the deficit down and make people better off.”
We can now compare the GDP figures with other data in the economy such as rising employment and retail sales and the comparison looks a lot better.
Some positives that comes from this is that the inflation is much lower with a potentiality that it could decrease even more starting early next year, which means people’s money will stretch a little bit further. Also, the deficit is growing and the employment rate is now up; another big thanks to the Olympics.
However, there are some down sides to this. The Eurozone crisis is still weak and the UK housing market is still flat. This gives Chancellor George Osborne something to work on.
The end to this recession puts pressure on Labour to come up with a strategy on how to manage the economy better by 2015 and it gives the Coalition a focus and plan to sustain this growth.