UK Economy Grows 0.8% in First Quarter | Prepaid365

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30 April 2014

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The UK economy experienced growth of 0.8% in the first quarter of 2014, according to the latest official figures.

The Office for National Statistics revealed the rise in gross domestic product for a fifth consecutive quarter, meaning the economy is now just 0.6% smaller than at its 2008 peak.

GDP is a measure of a country’s economic activity and includes all goods and services produced in a certain period.

Signs of improvement

The latest results are good news for Chancellor George Osborne who has consistently said that the economy would recover, a statement he reiterated in the 2014 Budget.

He said the foundations have now been laid for growth and a broad-based recovery meaning people could be encouraged to spend more, at least while the interest rate remains low.

The rate has been at a record low of 0.5% for four years and despite reports that it might be set to increase; indications from the Bank of England suggest it will not change until at least 2015.

The first growth estimate for the quarter is a slight increase on the 0.7% recorded in the fourth quarter of 2013, but it does represent a rise of 3.1% when compared with the same three month period of last year.

Positivity in the UK

However, some economists were expecting it to be even higher, but any level of growth is seen as a positive following a drawn-out period of recession.

The manufacturing sector was particularly strong in the first quarter, registering growth of 1.3% while the services and construction sectors both grew by 0.9% and 0.3% respectively.

Meanwhile falling inflation, which fell to 1.6% last month, means earnings have now caught up with inflation for the first time in six years.

Given the recovering economy, many people could be encouraged to spend on a wide variety of products.

Managing finances

However, carefully budgeting and the need to manage spending remains an essential part of life until the economy has fully recovered.

Using a prepaid card when making purchases could have a multitude of advantages, from limiting spending to countering potential fraud.

Financial management is extremely important so keeping spending in check with a prepaid card is a great way of ensuring you don’t spend more than you would like.

A prepaid card limits spending to the amount on the card at any given moment and is not directly linked to a bank account making funds safer.

The cards can easily be topped up or replaced if required while accounts can be checked regularly online if needed.

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