Figures out today reveal that British GDP has grown 0.5% in the last three months. But what does that figure mean exactly?
Well, it’s better than what was expected – economists were estimating a 0.4% growth so people are quite excited about that extra 0.1%. It also blows the previous three months’ growth of 0.1% out of the water.
So that’s good news, right? Err, well, maybe. Some cynical economists are claiming that the boosted figure is simply making up losses from the extra bank holiday for the royal wedding and the Japanese tsunami.
And while these figures are good, it doesn’t dampen our chances of falling back into a recession over the next few months.
While 0.5% is a fairly healthy level of growth even compared to better times, ideally we want to be growing at a faster rate to make up for all the output lost during the recession. However, there is a raging debate as to whether the British economy will ever catch up to pre-2008 levels. So probably best to keep that champagne sealed for the time being.
Still, some growth is better than no growth, right?
Do you think we’re out of the woods yet? Let us know what you think in the comments section below!