Economic growth on-target for quarter

Banking and other industries are showing improvements which will trickle down to benefit the public.

08:00 29 July 2013

Good news for banking, business, and public is that economic growth is on the rise. Growth is still quite slow at 0.6per cent but with the recent financial difficulties, any positive growth is a very good sign.

The figure is in alignment with projected expectations, and is an increase over the 0.3per cent growth for the previous quarter.

 

One of the positives is that this quarter construction was among the industries to experience growth, which usually portends positive changes in the economy. Here are a few benefits for the recent banking news:

 

• In conjunction with improved construction growth, the banking sector is cooperating with disclosure of lending numbers which should facilitate more competition amongst banks and greater trust from consumers. 

 

• Improvements in the construction industry also signal development of housing and businesses which will positively affect the economy and create more jobs to further stimulate continued construction and business growth. 

 

• Improved business and banking relations can lead to increased business, hiring, and expansion possibilities. That, in turn, has a direct effect on reducing unemployment and providing people with the means to tend to necessities and to spend on products and services within the community. 

 

• Continuous improvement in the reduction of unemployment and business development means that the banking industry will see more growth from those who need accounts, or are able to save money. 

 

• An increase in consumer demand for banking services such as savings accounts or ISAs can also help generate more competitive rates. Better yields would be expected from regular savings accounts, and lower interest rates would be typical for consumer and business loan programmes.

 

• While the construction of new residential housing certainly has a positive impact on the banking sector, it’s even more uplifting to realize that the work being done is with the effort to reduce the housing shortages and create lifestyle improvements for many people.