London emerges from the fog

It’s easy to be optimistic about UK prospects in light of the country's first-quarter GDP print, despite an effective lack of growth over the past six years.

The UK recovery strengthened in early 2014 and with the labour market improving and inflation contained there is reason to be optimistic about the economy’s prospects this year. But with real GDP still below its pre-crisis peak the recovery still has some way to go.

Real GDP rose by 0.8 per cent in the March quarter, narrowly missing expectations, to be 3.1 per cent higher over the year. It marks a new phase in the post-crisis recovery, with growth returning to its pre-crisis trend.

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