29 January 2015
The latest GDP figures were published this Tuesday (27 Jan) by the Office for National Statistics (ONS). Annual growth has finally picked up pace, and was the fastest since the financial crisis of 2007, however the recovery slowed in the final quarter.
The services sector was once again responsible for most of the recovery, whereas contraction has occurred in the construction, mining and energy industries. This indicates that the recovery is one highly reliant on consumer spending.
Shadow chancellor, Ed Balls said: “Construction is down again, business investment under this government is lagging behind our competitors and exports are way off target.”
TUC General Secretary Frances O’Grady said:
“This is the slowest recovery in modern history. George Osborne has already failed to meet the OBR’s modest forecast for the economy last year, and today’s figures show growth slowing down even more.
“With most people locked out of the recovery it’s no wonder that the economy is failing to do better. Families are set to be worse off in 2015 than they were five years ago. A recovery based on low wages and job insecurity is bad for working people, bad for the public finances and bad for growth.”
It is the IER’s position that the best way to increase wages and therefore create stable economic growth is through collective bargaining; “the only sensible road to recovery for British workers, British trade unions, and the British economy”. To find out more about collective bargaining, the IER’s Reconstruction After the Crisis: A Manifesto for Collective Bargaining is available for purchase.