Definition: Is a measure of the rise in the Gross Domestic Product (GDP)
- Current growth figures show the British economy grew by 0.3% in the first 3 months of 2013.
- Statistics are difficult to collect and are not always accurate in the short term. But are revised.
- It is extremely difficult to predict future economic growth and plan for it. Although a statement on growth is made every budget.
- Growth may be geographically variable, the economy may grow in the south but decline in the north. Recent modest figures illustrates this.
- Different sectors of the economy grow at different rates. The service sector accounts for three-quarters of the economy and grew by 0.6% in the first quarter whilst manufacturing remained sluggish.
- Growth can be promoted by government spending but this is not sustainable. The Coalition partially criticised Labour’s growing economy in 2010 based on high public sector borrowing and spending.
- To some extent growth depends on external factors, largely the growth in the economies of our trading partners and in world trade generally. The current Eurozone crisis has created pressures on the UK economy, Osborne has blamed the crisis for the current state of the UK economy. 38% of UK trade is with the Eurozone.
For more information view http://www.guardian.co.uk/business/economicgrowth