UK economy avoids triple-dip recession
The UK economy has grown 0.3% in the first three months of this year, meaning the UK has avoided a triple dip recession. An economy must not contract for two consecutive quarters, or it is classed as entering recession.
The Office for National Statistics has released the figures this morning, after an agonising wait for economists around the country. There were fears that the economy would slide into another recession, it would’ve been the third recession in five years for the UK, known as a triple dip recession.
Economists have said the slight growth should give a small psychological boost to consumers and businesses, but the overall picture of the economy remains the same. The UK economy has been on plateau, with small spurts of growth and contraction, since the financial crisis in 2008.
The slow growth of the economy has prompted economists and politicians to encourage Chancellor George Osborne to rethink the pace of the austerity programme. The slow growth in the economy has already led to two international credit rating agencies to strip the UK of its triple A rating.
Before the figures were release, shadow financial secretary to the Treasury, Chris Leslie, said that low growth was not ‘good enough’: “After nearly three years of flat-lining, we need to see decisive evidence that a strong and sustained recovery is finally under way.”