Strong GDP growth, but export support remains a priority

24th December 2013

·GDP quarterly growth was 0.

8% in Q3 2013, unrevised from the previous estimate ·Year-on-year GDP growth in Q3 2013 was revised markedly up to 1.9%, from the previous estimate of 1.5%, because of better figures for previous quarters ·Compared with its pre-recession level in Q1 2008, UK GDP is now 2% lower, considerably better than the previous estimate of 2.5% ·Business investment is up 2.0% between Q2 and Q3 2013, better than previously estimated ·The deficit in net trade more than doubled between Q2 and Q3 2013, as exports fell 3% while imports rose 0.7% Commenting on the third estimate of GDP for Q3 2013, published today by the ONS, David Kern, Chief Economist at the British Chambers of Commerce (BCC) said: -These figures are a mixed bag, but confirm that a broad-based recovery is underway. The upward revisions to earlier quarters support our view that the UK's economic performance has been stronger than initially thought, and that we are closing the gap on our pre-recession level. -But concerns still remain. The new current account figure shows a sharp deterioration to a deficit of 5.1% of GDP, and a fall in the investment balance and a wider trade deficit should not be taken lightly. While it is good news that we are recovering, and that earlier quarters were better than previously thought, the large current account deficit highlights the importance of prioritising measures to boost exports.