The global economic downturn affected business across the United Kingdom and beyond, and plunged some economies into a long recession. There are distinct signs now that those days are firmly behind us, and that we are embarking upon a new sustainable period of growth. A recent study released by the Office for National Statistics looked at the rise in UK GDP and the effect it was having on the labour market. Here, AJG Direct review this study and look at what it means for businesses across the country.
“It’s been obvious for a while that our economy was growing again, and it;s encouraging to see the ONS figures confirm this”, said Paul Gillett, director of AJG Direct. “GDP can only be taken as part of a bigger picture, but it can lead to an increase in business and consumer confidence that will help the recovery gather pace.”
The ONS study shows that the UK now has one of the fastest growing economies among the elite G7 group of nations. The figures relate to the 2012 financial year, and value UK GDP at $2.3 trillion, making it the eight largest economy in the world (the United States is at the top of the list). An increase in the production output of China saw it recognised as the world’s second biggest economy.
The economic downturn was a worldwide phenomena, yet the UK was more badly affected than most. Between quarter 1 of 2008, and quarter 2 of 2009, when the downturn bit, the UK economy fell by 7.2%. This was the joint second largest fall in the G7 group. Growth was slow after the initial recession was over, but this rate of growth is now accelerating. That’s one reason why the United Kingdom economy now has the fourth best GDP per capita of all the G7 and BRIC economies. This has improved still further in 2013 and the first quarter of 2014. Our GDP has risen by 3.1% in this period, compared to a 2.0% rise by the USA and 2.3% rise by Germany.
“This rise in production, and acceleration of growth, is great for our economy, and for the labour market as well”, said Paul Gillett. “Businesses can see that the growth is real, and here to stay. That will make them more likely to recruit and to take bolder moves than they otherwise would have. We can see a real boom in UK business in the years ahead.”
Businesses nationwide can also benefit from an increase in brand awareness, and more high quality customers, thanks to the bespoke marketing campaigns of AJG Direct.