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UK Economy avoids triple-dip Recession

The UK economy avoided what would have been devastating news today, as first quarter growth of 0.3pc was reported, and a triple-dip recession avoided.

A recession is confirmed when the economy experiences two consecutive periods of decline, and after a final quarter of 2012 growth figure of -0.3pc, any further decline would have officially seen the economy back in recession.

The growth figure is also better than expected. Many predictions from politicians and journalists yesterday didn’t rise over 0.1pc, while there were those who thought the economy would certainly enter into another period of recession.

The UK is still to start a proper recovery from the drastic economic decline experienced in 2008, and since then has been on a plateau, constantly rising out of decline before once again threatening a recession.

The has led to a great deal of pessimism about quarterly growth results, as many think we are not recovering, but simply staying at a lowly level we fell to in 2008.

This latest set of results is no different, as Labour MP and member of the Treasury committee, John Mann explains: “We’re falling further and further behind our competitors and of course the big emerging economies – the China’s, the India’s – they’re galloping ahead of us. They’re worrying if they’re down to eight, nine percent. They’re seeing that as a crisis”.

The service sector was the strongest in terms of growth over the first quarter, and showed good results of 0.6pc, with strong results from hotels and restaurants, while transport and communications contributed with growth of 1.4pc.

On the other hand however, construction fell by 2.5pc in the first quarter, leaving it at a level that is 18pc lower than before the 2008 recession, while the total economy is 2.6pc below peak levels before the downturn.

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