UK economic growth outlook still weak, NIESR says

Share price graph, calculator, and pen The NIESR highlighted that the UK is experienced its longest depression since before the 1930s

Related Stories

The UK economy's outlook remains "weak" despite experiencing a recent growth spurt, a respected think tank has said.

The National Institute for Economic and Social Research (NIESR) said the economy grew 0.8% in the last three months compared with a year ago.

It is the best performance since July 2010, but NIESR attributed it to special events, including the Olympics.

The economics research group said that the UK would return to its trend growth rate of 0.2%-0.3% in the coming months.

The September output figure was flattered by the value of Olympic ticket sales, while the additional bank holiday for the Royal Wedding also reduced output in the comparable period a year ago, the NIESR said.

Overall output remains almost 4% below its peak level in 2008, making this easily the worst performance by the UK economy since before the 1930s.

The institute said that its early forecasts had a margin of error of 0.1-0.2 percentage points.

Meanwhile, the International Monetary Fund has significantly downgraded its own growth forecast for the UK.

It now expects the economy to shrink by 0.4% this year. As recently as July it had been expecting positive growth of 0.2%.

The Prime Minister David Cameron responded to the IMF report by saying that the UK economy was going through a "slow and difficult healing process" as it rebalances.

"We need more private sector growth, we need a smaller public sector, we need to make more, sell more overseas and manufacture more," he told BBC Radio 4's Today Programme.

More on This Story

Related Stories

The BBC is not responsible for the content of external Internet sites

More Business stories


Features & Analysis

  • Stained glass of man with swordFrance 1 England 0

    The most important battle you have probably never heard of

  • Golden retriever10 things

    Dogs get jealous, and nine more nuggets from the week's news

  • Pro-Israel demonstrators shout slogans while protesting in Berlin - 25 July 2014Holocaust guilt

    Gaza conflict leaves Germans confused over who to support

  • The emir of Kuwait Sheikh Sabah al-Ahmad al-Jaber al-SabahFreedoms fear

    Growing concern for rights as Kuwait revokes citizenships

Elsewhere on the BBC

  • CastleRoyal real estate

    No longer reserved for kings and queens, some find living in a castle simply divine


  • Leader of Hamas Khaled MeshaalHARDtalk Watch

    BBC exclusive: Hamas leader on the eagerness to end bloodshed in Gaza

BBC © 2014 The BBC is not responsible for the content of external sites. Read more.

This page is best viewed in an up-to-date web browser with style sheets (CSS) enabled. While you will be able to view the content of this page in your current browser, you will not be able to get the full visual experience. Please consider upgrading your browser software or enabling style sheets (CSS) if you are able to do so.