UK economic recovery speeds up

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UK economic recovery speeds up

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Britain’s economy is perking up. Between July and September it expanded at the swiftest pace in more than three years.

Gross domestic product rose by 0.8 percent, improving on the previous quarter’s 0.7 percent.

That makes the UK one of the world’s fastest-growing economies at an annualised rate of over three percent.

But the Bank of England’s Governor Mark Carney has pointed out that that growth is coming from a low base.

So the bank’s stimulus policies are unlikely to change with interest rates staying at the record low of 0.5 percent for three more years.

In addition economists questions the sustainability of the recovery citing wages rising less than inflation, continued government spending cuts and the weak state of the eurozone, a major UK trading partner.

The growth between July and September meant the British economy expanded for three successive quarters for the first time since 2011.

Nonetheless, unlike almost all other developed economies, which have fully recovered output lost during the financial crisis, Britain’s economy remains 2.5 percent smaller than its previous peak in early 2008.