Second-quarter UK GDP revised up to 0.9 per cent, making us one of the fastest-growing developed economies

Emma Haslett
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The UK is now one of the fastest-growing developed economies (Source: Getty)

The UK is recovering faster than thought, official figures released today suggested - the Office for National Statistics said GDP rose 0.9 per cent during the second quarter, up from the previous estimate of 0.8 per cent.

The figure means UK GDP was 3.2 per cent higher than during the same period in 2013, and in current prices, it was 1.9 per cent higher than the first quarter of 2014 - reinforcing the UK's position as one of the fastest-recovering economies.

The ONS also added that changes to the way it measures GDP implemented at the beginning of this month have altered historical figures - meaning from peak to trough, the fall in GDP during the financial downturn was six per cent, rather less than the 7.2 per cent originally estimated. What's more, growth in the second quarter was 2.7 per cent above the pre-crisis peak.

With another round of robust figures, all eyes are likely to be on the Bank of England, which is due to vote on interest rates next week. The Bank has been criticised for being over-generous considering the speed of the UK's economic growth, but others argue recovery would be jeopardised if interest rates were to rise.

Jeremy Cook, chief economist at currency exchange World First, suggested investors should prepare for a rate rise.

While unlikely to have an effect on sterling assets in the short term, it does continue to raise questions as to the longevity of the Bank of England’s current ultra-accommodative monetary policy.

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