Business leaders welcome latest GDP figures

BUSINESS leaders in Birmingham have welcomed latest figures showing the UK economy is growing faster than previously thought.

Latest figures from the Office for National Statistics (ONS) show third quarter gross domestic product was up 0.8% in the July-to-September period compared with the previous quarter, which confirmed its previous estimate.

However, it has revised its growth figures for earlier quarters to show the estimated annual growth rate has now risen from 1.5% to 1.9%.

Tim Pile, president of Birmingham Chamber of Commerce said the figures indicated a more stable economic recovery.

“While the GDP figure remains unchanged, it gives us a reason to be optimistic going into 2014,” he said.    
 
“The UK’s GDP growth this year has been higher than in Germany, France, Italy, and Spain so today’s announcement shows we are on a more solid footing. Other indicators such as inflation and unemployment are also moving in the right direction.
 
“The British Chambers of Commerce recently upgraded its GDP forecast to 2.7% for 2014, which is also a significant and welcome move.”
 
However, he said more could – and should – be done.

“SMEs need to be the core drivers of the West Midlands economy in 2014.  So the Government should continue to focus on the key issues affecting businesses, such as access to finance, red tape and regulation,” he added.  

The ONS data also showed that Britain’s balance of trade deficit – the void between the money the country receives from exports and imports – widened sharply in Q3 to £20.7bn, up from £6.2bn in Q2.

Public finances also weakened in November, with public sector net borrowing – excluding the effect of bank bailouts – rising to £16.5bn, up from £15.6bn compared with the same month last year.

Despite the strengthening economy, underlying public sector net debt rose to 76.6% of GDP, a new monthly record.