Prime Minister David Cameron welcomed the data but warned against complacency amid global economic headwinds."There is still much to do, but these GDP figures show we are on the right track, and our economy is healing," Cameron said in a statement. Chancellor of the Exchequer George Osborne echoed the cautious sentiment, saying that "yesterday's weak data from the eurozone were a reminder that we still face many economic challenges at home and abroad." Britain escaped from a deep downturn in late 2009 but fell back into recession at the end of 2011.
The economy contracted by 0.4 percent in the second quarter of this year after shrinking by 0.3 percent in the first -- and by 0.4 percent in the final quarter of 2011. "GDP was estimated to have increased by 1.0 percent in Q3 2012 compared with Q2 2012," the Office for National Statistics said in a statement. The largest contribution to the increase came from the services sector. There was also an increase in activity in the production sector. Activity in the construction sector fell. Growth was also affected by one-off factors, including the London 2012 Olympic Games and rebounding activity after an extra public holiday for Queen Elizabeth II's Diamond Jubilee, the ONS said.
Shadow Chancellor Ed Balls responded to the news: “It's good news that, with the help of the Olympics, Britain is finally out of the longest double-dip recession since the Second World War. Our economy desperately needs an injection of confidence. But this is no time for complacency and wishful thinking. Today's figures show that underlying growth remains weak and that our economy is only just back to the same size as a year ago - twelve months of damaging flatlining which has seen borrowing rise in the first half of this year. And with living standards falling, more tax rises on the way, small business lending down and the eurozone still in crisis, it would be very unwise of David Cameron and George Osborne to just sit back, cross their fingers and hope for the best. The complacent thing to do now is simply to wait and hope things will get better. The cautious thing to do is to act now to secure and strengthen growth in our economy".
Co-Chair of the Liberal Democrat Treasury Spokesperson, Stephen Williams said: “Today’s positive GDP figures are another encouraging sign. Together with falling unemployment and inflation, these are signs that the economy is healing.“The UK suffered a huge economic shock during the financial crisis. Liberal Democrats were clear when we joined the Coalition Government that it would be a choppy road to recovery but that we needed to create the right conditions to support growth and deal with the deficit. “Today’s news is positive but we are working hard to build a sustained and sustainable economic recovery. Only last week, Nick Clegg announced another £1bn worth of investment through the Regional Growth Fund, helping to create jobs across the country.
“Liberal Democrats know that what matters to people is not abstract numbers but the money they have in their pocket. That is why we have done the right thing to support people on low and middle incomes in these difficult times by lifting more than a million people out of paying Income Tax all together and giving nearly 25m people a £550 Income Tax cut since 2010.”
Shadow Chancellor Ed Balls responded to the news: “It's good news that, with the help of the Olympics, Britain is finally out of the longest double-dip recession since the Second World War. Our economy desperately needs an injection of confidence. But this is no time for complacency and wishful thinking. Today's figures show that underlying growth remains weak and that our economy is only just back to the same size as a year ago - twelve months of damaging flatlining which has seen borrowing rise in the first half of this year. And with living standards falling, more tax rises on the way, small business lending down and the eurozone still in crisis, it would be very unwise of David Cameron and George Osborne to just sit back, cross their fingers and hope for the best. The complacent thing to do now is simply to wait and hope things will get better. The cautious thing to do is to act now to secure and strengthen growth in our economy".
Co-Chair of the Liberal Democrat Treasury Spokesperson, Stephen Williams said: “Today’s positive GDP figures are another encouraging sign. Together with falling unemployment and inflation, these are signs that the economy is healing.“The UK suffered a huge economic shock during the financial crisis. Liberal Democrats were clear when we joined the Coalition Government that it would be a choppy road to recovery but that we needed to create the right conditions to support growth and deal with the deficit. “Today’s news is positive but we are working hard to build a sustained and sustainable economic recovery. Only last week, Nick Clegg announced another £1bn worth of investment through the Regional Growth Fund, helping to create jobs across the country.
“Liberal Democrats know that what matters to people is not abstract numbers but the money they have in their pocket. That is why we have done the right thing to support people on low and middle incomes in these difficult times by lifting more than a million people out of paying Income Tax all together and giving nearly 25m people a £550 Income Tax cut since 2010.”
