Andrew Smith, KPMG’s Chief Economist, comments on the UK’s 0.5pc third quarter growth:
“To all intents and purposes the economy has been almost stagnant over the last twelve months and remains around 4% below the peak of 2008.
“Against this background, the half percent rise in GDP comes as something of a relief, but the slow recovery is already having a significant impact on households as unemployment starts to rise again and real earnings remain depressed.
“At the current rate of recovery it will take two years just to get back to the 2008 level of economic activity. The chancellor looks set to come under increasing pressure to revisit the deficit reduction plan or come up with alternative strategies for growth.”
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About KPMG
KPMG LLP, a UK limited liability partnership, is a subsidiary of KPMG Europe LLP and operates from 22 offices across the UK with nearly 11,000 partners and staff. The UK firm recorded a turnover of £1.6 billion in the year ended September 2010. KPMG is a global network of professional firms providing Audit, Tax, and Advisory services. We operate in 150 countries and have more than 138,000 professionals working in member firms around the world. The independent member firms of the KPMG network are affiliated with KPMG International Cooperative ("KPMG International"), a Swiss entity. KPMG International provides no client services.
