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Seven year high for economic growth
Only a few countries that have reported 2014 economic growth data. The results imply that UK economy was one of the best best-performing economies in 2014.
Analysts ONS believe growth estimates are even higher than the estimates given by IMF for other big developed nations. In its latest report, The IMF has estimated UK’s economic growth at 2.4% in 2014. It is also forecasting 2.7% growth for UK in 2015.
ONS data reveals that the last quarter slowdown was a result of contraction in mining, construction, and some other sectors. Weaker energy supply was the main reason behind less than expected industrial output. Some analysts believe slightly warmer weather last year may be the reason behind weaker energy supply.
The services sector experienced a growth of 0.8% in the last quarter of 2014. This sector contributes about 78% of UK’s GDP and dominates the economy.
The construction sector is another important part of the British economy. Construction industry contracted in the last quarter of 2014.
According to ONS, current figures for final quarter are preliminarily estimations and there remains a scope of change once statistics office gets more data from various sectors.
According to political pundits, current growth figures may prove to be a moral booster for British Prime Minister David Cameron who will be leading his party during national elections in May this year.
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