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Economic growth faster than expected as Britain exits recession

25 October 2012

The economy is out of recession. It grew by 1 per cent in the third quarter of this year, which is the fastest quarterly growth rate since 2007.

This positive number makes it a lot easier for the coalition to claim that the economy is ‘healing’. Expect to see ministers heading to TV studios to talk about how a million more private sector jobs have been created, how there are record number of new start ups and that inflation is down. Being out of recession makes it a lot easier for the coalition to defend its economic record.

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Today’s number should also serve to boost consumer confidence, to provide a little bit of a ‘feel-good’ factor.

Now, there are obviously unique factors involved in this growth figure. Olympic ticket sales, for instance, added 0.2 per cent to GDP. But, politically, these numbers will be a shot in the arm to the coalition.

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  • fubarroso

    Growth my a*se! The only growth has been in the public sector. We are not saved! John Redwood speaks the truth.

  • David Lindsay

    Economically, we are only back where we were last year, when no one outside the Government and its Fleet Street running dogs felt particularly prosperous, to say the very least.

    Meanwhile, to no one’s even slightest surprise, it turns out that we have done absolutely no good in Afghanistan.

  • Can’t hold back the vomit

    The numbers are open to debate. The reality is the economy is stuffed, and strangled by UK/EU red tape.

    Older voters like me are stuffed, thanks to QE and Cam/Osbo’s endorsement of it.

    Neither this coalition nor Labour have a clue about how to produce real economic growth, with real benefits for the country.

    Meantime MPs continue to binge (see Guido Fawkes) on taxpayers’ money.

    James, as ever, the loyal mouthpiece for Cam/Osbo. (Some day, James might
    want to consider real journalism — ie; holding people, institutions,
    even government to account).

    • HellforLeather

      “the fastest quarterly growth since 2007”, says James.

      James, of course, doesn’t explain in relative terms how low the base for that growth was — probably because he doesn’t understand how that stuff works, and also because he is just a coalition puppet.

  • HooksLaw
  • james102

    The feel good factor has more to do with the relationship between earnings and inflation than GDP.With our population increasing due to immigration increased total GDP should be inevitable.

  • HooksLaw

    Was the economy ever in recession? The previous figures have been regularly updated.
    The economy suffered a massive heart attack in 2008. Its not going to recover quickly, and it will never recover if it resorts to feeding itself on the fatty food of more and more unaffordable public spending.

    • HellforLeather

      You’e a govt spad, not so? Or, possibly just a fixer with another weird title?

      Either way, you’re outed (unless of course you are JamesF himself, ie Cam/Osbo echo chamber?)

  • DavidDP

    If we thought that the next quarter was definitely going to show growth, and (or even or) that there was a clearer drop in deficit spending, then it’d be somethign worth crowing about.
    But neither of those is really true, so really the best reaction is a tentative “Good, so far as it goes…..”.

  • Bob Dixon

    Any growth will remain problematical while we are on the existing path of keeping our BANK’s alive.
    Several are insolvent. They need putting into administration. The solvent parts of the banks will be snapped up.The insolvent parts can be put out of their misery.
    The new banks created can then lead the country back into meaningfull growth.
    Who is out there with THE BALLS to do this?

    • dorothy wilson

      Certainly not the two Eds.

  • L’Arse

    Let’s see if this modest quarterly growth figure is actually maintained before Ministers crow too much about it. If the economy should contract again, will they have anyone else left to blame?

    • HooksLaw

      1% is not modest. The UK does well in good times to get to 2.5% per annum.

      • L’Arse

        Bloody hell – do you mean to say the economy is overheating? Quick, slam on the brakes, raise interest rates, tell Merv the Swerve to stop producing that funny money…

        • Archimedes

          We have a sizeable output gap.

          • L’Arse

            The Government’s credibility gap is even larger.

            • Archimedes

              Such is life. With time people will get over their objections.

          • dalai guevara

            Bang on, Archimedes.
            We need to see other hard data like an import/export ratio and tax returns. This data means little when we are printing 10x as much in the same period measured.

          • HooksLaw

            ‘Mr President – We must close the output gap!’

            • Archimedes

              You mean “Mr President, we cannot allow an output gap!”?

        • HooksLaw

          Bloody hell – do you have a clue about anything? What I mean to say it what I in fact said. Take a look at the mean trend of UK GDP growth.

          The growth over the long term of course is indeed modest, the quarterly figure is not. There have been a number of disrupting events over the last 12 months and this quarter has seen them run out.

          Given the hammering the economy took in 2008 I think any growth in the longer term approaching 2% pa would be spectacular.

          • L’Arse

            Can’t remember you applauding when Chancellor Darling got the annualised growth figure up to 1.7% before leaving office. Must have slipped your mind…

            • dorothy wilson

              But he did so by creating more public sector jobs, which we could not afford.

              • L’Arse


                By November 2008, unemployment had risen to over 1.8 million (compared to just over 1.5 million at the start of the year) and by March 2009 had surpassed 2 million, the highest for 13 years. The numbers peaked at just over 2.5million in Jan 2010.

      • HellforLeather

        1 % economic growth is pathetic, considering the relatively low base that growth comes from after prolonged contraction/flat-lining.

        And, what has been the rise in cost of living in each of the last few years?

        Is your real name Osbourne? Or, Cameron?

  • George_Arseborne

    At long last some good news on growth thanks to the Olympics not Government policies. Sustaining this figure hangs on a rope? I do hope this hopeless government runs by Cameron and Osborne do not bring us back to recession.

    • Rob Broome

      The Olympics counted for 0.2% of that figure and hampered the economy in other ways. Cheer up. If they do end up with more quarters of negative growth soon the largest factor has been the weakness of the eurozone (our exports there are down drastically). It’s been a drag on our economy since Greece imploded and the other PIIGS started to struggle, Austerity has made little difference.

    • Colonel Mustard

      You and L’Arse cut ridiculous figures here. Go and post on some red site where your lies will be believed.

      • L’Arse

        Calm down, Colonel. Would you mind telling me where on this thread have I posted a falsehood, a plainly inaccurate statement or anything that can be construed as a lie?

        • Colonel Mustard

          Well, I have great difficulty in believing that you are someone really called L’Arse to start with . . .

          • L’Arse

            And you, no doubt, are actually a non-fictional character made up as part of a reality board game.

            • Colonel Mustard

              It is not about me. You are the one who claimed no falsehoods, not I. But your proposition certainly brings the whiff of “standard socialist response” with it.

              • L’Arse

                Well, you know what they say about mustard and flatulence…

                • Fergus Pickering

                  Well, with a name like yours, Arsey old chap!.

                • L’Arse

                  Quite! It takes one to know one…

                • Colonel Mustard

                  As above. Still playing the usual socialist’s card I see.

  • jazz6o6

    “Fatser than expected”..????


  • ToryOAP

    This is the worst possible news for Milliband, Balls and Reeves. There must be some mistake. Cameron surely broke the law didn’t he?

    • George_Arseborne

      We all knew ( Milliband, Balls,Reeves, including Tom, Dick & Harry) that the Olympics will generate some growth in the Economy. So why was hopeless Cameron excited? This growth was not generated from their reckless policies that took the nation into double dip recession.

      • Colonel Mustard

        Rubbish. It was New Labour’s reckless fiscal policies, profligate waste, book cooking and general incompetence that caused all of this.

        • HellforLeather

          Gordon Brown destroyed the economy, but this coalition allowed the Olympics bill to soar to £10-12 billion, from an original budget of £2.5 billion.

          And, despite the departure of the odious Mitchell, it continues to spend £30 million per day on so-called overseas aid.

          Big chunks to countries like India and Pakistan which have developed nuclear weaponry at the expense of taking care of their own people. (Oh, and let’s not forget Mitchell’s last day spray-away to Rwanda).

      • Archimedes

        I don’t think it’s as clear cut as that. The Olympics cause displacement elsewhere in the economy. We know that tourism was down, and retailers were reporting 30% drops in footfall over the olympic period.

        The adjustment from the extra bank holiday in Q2 is likely to have had more of an impact than the Olympics – but that just means that Q2 growth, had it been adjusted, would have been better.

        The services sector looks robust though, and the manufacturing data is encouraging.

        • George_Arseborne

          Also take note that this figure is mostly generated from S.E. England. The rest of the country is still in recession. Osborne of all is not happy with this over blown figure because he knows well that we will be back soon into tripple deep recession. Oh the snow will be blame

          • Colonel Mustard

            More rubbish from the imported Labour supporter.

            • L’Arse

              Bleedin’ immigrants – coming over here and taking all our comments…

              • George_Arseborne

                Oh deary me!!! From immigrants taking jobs to boost the economy to another fascist on occupy comment.Ridiculous. Tony Blair won the olympics, it took us out of recession. Cameron lost the bid for for 2018 World cup. We are doomed

                • Colonel Mustard


              • Colonel Mustard

                It’s not their comments, it’s their votes.

          • TomTom

            Is there any other part of the island ? I thought the Commuter Belt around Central London was the only inhabited part of this desert island….or is that just the impression BBC and Newspapers like to give ?

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