UK Economy Continues Recovery from Recession
Strong Growth in Second Quarter
Britain's economy continued its steady recovery from the recession at the end of last year, with a 0.6% growth in gross domestic product (GDP) between April and June.
This follows a 0.6% growth in the first quarter of the year, marking the first time the UK has experienced consecutive quarters of growth since before the recession began in 2008.
Contributing Factors
- Increased consumer spending
- Rising exports
- Government investment
Consumer spending, which accounts for around two-thirds of UK economic activity, grew by 0.7% in the second quarter. This was driven by increased spending on durable goods, such as cars and furniture, as well as on services, such as travel and leisure.
Exports also rose by 1.2% in the second quarter, boosted by strong demand for UK goods from emerging markets. Government investment increased by 0.6%, with spending on infrastructure projects playing a key role.
Outlook
The UK economy is expected to continue growing in the coming months, although the pace of growth is likely to slow. The International Monetary Fund (IMF) has forecast 1.4% growth in 2014 and 2.1% growth in 2015.
However, there are some risks to the outlook, including the ongoing crisis in the eurozone and the potential for a slowdown in global economic growth.
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