UK economic growth is measured by the change in the country’s GDP, or gross domestic product. This includes all the economic activity of companies, governments and people in a country.
In the UK, the Office for National Statistics (ONS) publishes new GDP figures every month, external. However, these can vary quite a lot and the quarterly figures – covering three months at a time – are considered more significant.
Most economists, politicians, and businesses like to see GDP rising steadily.
That’s because it usually means people are spending more, extra jobs are created, more tax is paid, and workers get better pay rises.
When GDP is falling, it means the economy is shrinking.
This can be bad news for businesses and workers as it can lead to pay freezes and job losses.
If GDP falls for two quarters in a row, that is known as a recession.
