Jul 25, 6:44 AM EDT

UK economy grows to surpass pre-crisis peak

Business Video

Latest Business News
US employers add 209K jobs, rate rises to 6.2 pct.

GM boosted June sales with discounts to dealers

US consumer spending up 0.4 percent in June

Ford's US sales up 10 percent in July

Harley recalls bikes for ignition switch problem

Multimedia
A district summary of the Beige Book
Measuring economic stress by county nationwide
Mall malaise: shoppers browse, but don't buy
Unemployment by the numbers
Family struggles with father's unemployment
Saying an affordable goodbye
Hard times hit small car dealer
Latest Economic News
US employers add 209K jobs, rate rises to 6.2 pct.

How the Dow Jones industrial average did Thursday

NY Fed: Puerto Rico should seek economic reforms

As US job market strengthens, many don't feel it

Eurozone inflation down again but ECB seen on hold

Russia tensions hurting European companies

A more vigorous US economy appears to be emerging

Revised data: US grew faster in 2nd half of 2013

Spain economic growth at fastest pace since 2007

Worries about US consumers drag stocks lower

Buy AP Photo Reprints
Interactives
Greece's Debt Threatens to Spread
State budget
gaps map
Auto industry problems trickle down, punish Tennessee county
Women give old Derby hats a makeover in tough economy
S.C. town deals with highest unemployment in South
How mortgages were bundled and sold as securities
Tracking the $700 billion financial bailout
Tracking the year's job losses
State-by-state foreclosures since 2007
Credit crisis explained
Presidents and their economic legacies
Lexicon of the financial crisis
Americans' addiction to debt

LONDON (AP) -- Britain's economy has grown to surpass the peak it reached in 2008, before the global banking crisis caused a deep recession, official figures showed Friday.

The Office for National Statistics said gross domestic product grew by 0.8 percent in the three months through June compared with the previous quarter. It expanded 3.1 percent over the year, putting it 0.2 percent ahead of its pre-crisis peak in early 2008.

The global financial crisis triggered a deep downturn for the British economy. By mid-2009, GDP was more than 7 percent below its pre-recession level.

Treasury chief George Osborne said Friday's figures marked a "major milestone in our long-term economic plan."

On Thursday, the International Monetary Fund predicted that Britain's economy would grow by 3.2 percent this year, making it the fastest-growing among major industrialized nations.

Opposition politicians and some analysts warned that the recovery is built on shaky foundations. Much of the GDP growth was in the services sector, which expanded by 1 percent. Manufacturing grew by 0.2 percent, while construction shrank by 0.5 percent.

"The U.K. economy isn't as strong as it looks," said Ben Brettell, senior economist at stockbrokers Hargreaves Lansdown. "While it has surpassed its pre-crisis peak in absolute terms, a larger population means GDP per capita is around 6 percent lower."

In another sign of returning financial-sector confidence, the Royal Bank of Scotland announced Friday that its pre-tax profits nearly doubled to 2.65 billion pounds ($4.5 billion) in the first half of the year. RBS was bailed out by the British government during the crisis and remains 81 percent owned by taxpayers. Its shares jumped over 13 percent after the earnings report.

© 2014 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed. Learn more about our Privacy Policy and Terms of Use.

Latest News