Osborne says economy is ‘healing’ as UK avoids a triple-dip recession

Chancellor George Osborne insisted yesterday that the economy is “healing” as official figures revealed Britain dodged a much-feared triple-dip recession with growth of 0.3 per cent in the first three months of the year.
By The Newsroom
Published 26th Apr 2013, 01:01 BST
Chancellor George Osborne is shown how to play an internet security game called 'Capture' by the man who made it Howard KingstonChancellor George Osborne is shown how to play an internet security game called 'Capture' by the man who made it Howard Kingston
Chancellor George Osborne is shown how to play an internet security game called 'Capture' by the man who made it Howard Kingston

A strong showing from the services sector and surging demand for energy as households ramped up their heating offset some of the impact of the snow at the start of the year, helping the UK pull back from the brink of its third recession since 2008.

The figure will relieve some of the pressure on Mr Osborne to rethink his austerity policy, following recent warnings from the International Monetary Fund (IMF) and last week’s move by rating agency Fitch to strip the UK of its AAA rating. But the better-than-expected growth in gross domestic product (GDP) did little to ease fears that the economy is flatlining, with economists warning the bounce back was relatively “feeble” given the drop at the end of last year.

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Mr Osborne said: “Today’s figures are an encouraging sign the economy is healing. Despite a tough economic backdrop, we are making progress. We all know there are no easy answers to problems built up over many years, and I can’t promise the road ahead will always be smooth, but by continuing to confront our problems head on Britain is recovering and we are building an economy fit for the future.”

The pound rose after the GDP data, gaining one per cent against the US dollar. But some economists urged caution. Mark Littlewood, director general at the Institute of Economic Affairs, said: “We are in danger of meagre growth becoming the new normal.”

Shadow chancellor Ed Balls said the coalition had overseen the “slowest recovery for over 100 years” and called for “urgent action to kick-start our economy”.

Comment: Page 12.

Related topics:GDPEd BallsInternational Monetary Fund