UK Revises Upward GDP From Before Recession Years

The Office for National Statistics has revised up its estimates for UK Gross Domestic Product during and after the recession.

The change comes after estimates of proceeds from charities, illegal drugs, and prostitution were included in the official figures for the first time.

Growth has been revised up by 0.1 percentage points per year between 1997 and 2012.

The ONS also suggested the recession ended in the third quarter of 2013.

Previously it had suggested the recession carried on until the second quarter of 2014.

The changes to the way the ONS calculates GDP show that the economy shrank by up to 6% in the recession, rather than the previous “peak-to-trough” estimate of 7.2%.

The revisions for 1997 to 2012 show that the size of the economy was on average 4% – or £50bn – larger than previously thought each year.

via BBC

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza