11.06.201404:29:07UTC+00UK marks first milestone in ongoing recovery

Despite arriving behind its fast paced continental neighbors to the recovery zone, the UK has finally achieved enough to say it has left the financial crisis behind. Developed economies such as those of the US, Germany, and France may have been quicker to recover, but Britain’s economic growth rate now boasts the title of being the best performer on the continent.

Leading the way for the UK is its manufacturing sector that has played a significant role in the expansion of its economy. According to the highly respected National Institute of Economic and Social Research (NIESR), there has been sufficient enough growth in the economy to predict that output levels in May will be found to have exceeded by 0.2% the peak reached January 2008 when the financial crisis impacted much of Europe.

For the NIESR, this signifies the full circle recovery of the manufacturing output as it returns to pre-crisis levels. The sector itself has grown 4.4% on a year on year basis in April boding well for the stability of the country’s ongoing recovery from the worst crisis Britain has experienced in 80 years. This strong performance could be credited to the measures introduced by Chancellor George Osborne that focused on boosting investments, exports, and regional development and skills.

The road of recovery is far from done, however, as the growing economy has yet to make itself fully felt throughout the UK nor has it trickled down to the individual level. Its gross domestic product per person is still some ways away from pre-crisis levels along with income per head and real wages.

For the International Monetary Fund, increased economic activity is needed in order to create sustainable conditions for wages to surge back up where they were before the crisis. It is estimated by the Office for Budget Responsibility that this time may not be for another several years until 2018.