United Kingdom


  • Service: Tax
  • Type: Press release
  • Date: 25/04/2013

No triple-dip: “A relief, but muted celebrations” says KPMG Chief Economist 


Commenting on the Office for National Statistics’ preliminary estimate of UK Gross Domestic Product which showed that the economy grew by 0.3% in the first quarter of 2013, KPMG Chief Economist, Andrew Smith, said:


“Phew! At least we have escaped the dreaded triple-dip recession – and by a larger margin than expected. The recovery has to start somewhere and the 0.3% rise in output in the first quarter is ahead of the Office for Budget Responsibility’s expectations, adding credibility to its forecast of 0.6% growth for the year as a whole.


“But the celebrations will be muted. Households are struggling against a backdrop of high debt and falling real wages while our main export market – Europe- continues to stagnate. And the labour market – which has been resilient so far – is starting to show signs of weakness. The big picture remains one of a broadly flat economy with output still some 2½% below its pre-recession peak.


“By any standards this is at best a weak recovery as the private sector struggles to generate sustainable growth on its own. After a fiscally conservative budget, the Chancellor is putting a lot of weight on monetary activism. Over to you, Mr Carney.”



For further information please contact:


Mark Hamilton, KPMG Corporate Communications

Tel:  0207 694 2687 mark.hamilton@kpmg.co.uk


KPMG Press Office: 0207 694 8773


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 over 12,000 partners and staff.  The UK firm recorded a turnover of £1.8 billion in the year ended September 2012. KPMG is a global network of professional firms providing Audit, Tax, and Advisory services. We operate in 156 countries and have 152,000 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.


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