The UK economy has returned to pre-crisis levels by expanding 0.8 per cent in the second quarter of this year.On an annual basis gross domestic product (GDP) expanded by 3.1 per cent.The figures show the economy is now worth 0.2 per cent more than it was at its peak in 2008, the Office for National Statistics (ONS) said.
The service sector is the only part of the economy that has passed its previous 2008 peak, although that accounts for almost 80 per cent of UK output. Other key sectors, including construction, industrial production and manufacturing, have yet to outstrip levels reached in 2008. The UK economy is forecast to be the fastest growing among the G7 developed nations, according to the International Monetary Fund (IMF).
On Thursday, the IMF predicted the UK would expand by 3.2 per cent this year, up from a previous forecast of 2.8 per cent. Chancellor George Osborne said: "Thanks to the hard work of the British people, today we reach a major milestone in our long-term economic plan." But shadow chancellor, Ed Balls, said people were not feeling happier: "With GDP per head not set to recover for three more years and [with] most people still seeing their living standards squeezed, this is no time for complacent claims that the economy is fixed."