Revisions to UK GDP growth
Posted on June 28, 2013 by Paul Mac Flynn
The ONS yesterday released the third estimate of GDP figures for the first quarter of 2013 where growth was revised down from 0.6% to 0.3%. The revisions to recent historical data also erased the "double-dip" recession that was thought to have occurred in in the first quarter of 2012. Growth in 2012 Q1 was revised up from -0.1% to 0.0%, a stagnation as opposed to contraction. The ONS report is here
The ONS also revealed revisions to its GDP figures for 2008 showing a much larger fall in national income at that time. Simply put, the crash was much worse than we thought. This also means that the UK economy is now 3.9% below its pre-crisis peak rather than 2.4% as previously reported. This has significant implications for the productivity puzzle currently affecting the UK economy. This was covered in the most recent NERI In-Brief here.