‘GDP Not Enough to Drive Recovery’
The increase in GDP is only a “marginal relief” that cannot push back the prospect of a sluggish recovery, according to a chief economist at KPMG.
“To all intents and purposes the economy has been almost stagnant over the last twelve months and remains around 4% below the peak of 2008,” Andrew Smith, KPMG’s Chief Economist, said about UK’s 0.5pc third quarter growth.
“Against this background, the half percent rise in GDP comes as something of a relief, but the slow recovery is already having a significant impact on households as unemployment starts to rise again and real earnings remain depressed,” Smith added.
“At the current rate of recovery it will take two years just to get back to the 2008 level of economic activity. The chancellor looks set to come under increasing pressure to revisit the deficit reduction plan or come up with alternative strategies for growth,” Smith said.