Britain’s economy runs on fast track

British Chancellor George Osborne

Offical ONS figures reveal that economic growth also revised up for the first quarter of 2015 but separate figures show disposable income is still lower than in 2008…reports Asian Lite.

British Chancellor George Osborne
British Chancellor George Osborne

ONS statistics reveal that Britain’s economy is growing even faster than previously thought, In the first three months of the year, the economy grew 0.4 per cent – 0.1 per cent higher than previous estimates. Over the whole of last year it boomed 3 per cent, the Office for National Statistics said.

However, British families are still poorer than they were before the economic crash seven years ago.

FollGDP per head increased by 0.2 per cent in the first three months of the year, but remains 0.6 per cent below pre-economic downturn levels.

According to the ONS, real disposable income per head increased 1.6 per cent in the first three months of the year – but is still 3.8 per cent below pre-economic downturn levels which makes the economic scenario little bleak.

Overall, the figures showed that the average – or ‘median’ – income in the UK was £24,500 at the end of 2014, up 3.4 per cent on the year before.

Despite the hit on household incomes, George Osborne  welcomed the strong economic growth and insisted he was protecting the country from future crashes, reports the Daily Mail.

According to the report, The Chancellor said: “I welcome the news that growth was stronger than previously thought in both the first quarter of this year and the whole of 2014.’’

Osborne said it was clear that Tory plan is laying the foundations for economic security for working people, with the three main sectors of the economy growing over the past year and business investment over thirty per cent higher than at the start of the last parliament.

Overall, GDP is now up 2.9 per cent compared to a year ago. The ONS said the recovery was ‘broad-based’ – with all three of the major sectors of the economy growing compared to a year ago. Manufacturing is up 1.4 per cent on a year ago, services up 3.1 per cent and construction up 4.5 per cent.