Britain is out of recession GDP figures state, with Olympics lending a hand

The Office for National Statistics declares the UK’s double-dip recession over with its new figures

11:38 25 October 2012

Britain has come to the end of its double-dip recession, as figures announced by the Office for National Statistics (ONS) show that the UK’s economy has had a quarterly growth. The rise of 1per cent over a span of three months is the country’s best result in five years.

 

The GDP figures show that this growth - from the second to the third quarter - differs to the results taken from the first quarter, where the economy shrank by 0.4per cent. With regards to 2012, the ONS has said the UK’s economy has improved by 0.3per cent on the whole.

 

Chancellor George Osborne warns that the financial fight isn’t over yet however, saying: “There is still a long way to go, but these figures show we are on the right track.”

 

The news comes following the effects of the austerity measures on Britain, and not forgetting the impact of the Eurozone crisis.

 

Events that have taken place so far this year are part responsible for the positive outcome it seems.

 

The ONS have referred to the London 2012 Games as being one possible factor, as the Olympics and Paralympics may have improved the economy in the third quarter.

 

It said, as quoted by The Telegraph: “In particular, the sales of Olympic tickets increased GDP growth in the quarter by 0.2 percentage points and there may have been other effects, which are impossible to quantify."

 

The Games are part of the UK’s service sector, which is an area that covers at least 75per cent of the country’s economy, and its figures have risen.

 

Britain’s manufacturing sector has also grown by 1.1per cent while construction remains in its lull, where reportedly the figures reflected for this area shrank by 2.5per cent.

 

The figures will be welcomed by the government, who have come under criticism for their austerity programme.