GDP is stuck below 2008 peak as stagnation looms

BRITAIN is avoiding another recession despite its GDP remaining stuck below the pre-crash peak, an economic think tank has said.

The UK is not in a recession because the economy is still growing slowly, the National Institute for Economic and Social Research (NIESR) said yesterday.

The economy expanded by a lowly 0.5 per cent over the 12 months to September, the report estimated.

“Anaemic” growth has left GDP four per cent below its 2008 peak.

Labour’s shadow treasury minister Chris Leslie blamed the government’s deficit reduction policies -- such as the VAT hike -- for the low rate of growth, and urged the coalition to bring forward capital spending.

“If these estimates turn out to be accurate, it would mean the government’s growth forecasts being downgraded for the fourth time since David Cameron and George Osborne took office,” he said.