UK IS EXPERIENCING FASTEST GDP GROWTH

The growth of UK GDP is recorded to be the fastest in three years. The economic output hiked by 0.8% from July to September. There is a 0.7% growth in GDP in April to June quarter making it the highest performing quarter, since 2010.

Growth by building sector

The maximum growth was pulled in by the building sector with 2.5% increase in performance in the quarter. The ‘Help to buy scheme’ has buoyed the house builders by offering new phase of mortgage guarantees.

Osborne’s comment

Mr. Osborne said that the UK is on its path to prosperity and the path still has many risk factors. He also mentioned that the hike is not just because of construction industry alone. There is a significant increase in service sector and manufacturing as well.

Next stage

The next target is on the supply side as the constraints on this side indicate that the growth is unlikely to extend, beyond the next year. Many people think that the growth in GDP refers that the economy is recovering and moving in the right direction. The GDP figures show that the country is in the period of balanced and healthy growth. However, with stagnant Eurozone and fiscal squeeze, there are a lot of hurdles on the path, to prosperity.

Source: http://www.bbc.co.uk/news/business-24668687

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