Treasury and Pensions Minister Torsten Bell has welcomed figures showing that the UK economy grew by 0.4% in July, arguing that economic growth is fundamental to improving wages, living standards and public services.
The latest Office for National Statistics figures show that the economy expanded despite significant international headwinds arising from the conflict in Iran.
Services grew by 0.4% during July, production increased by 0.2% and construction rose by 0.1%. GDP was also 1.6% higher than in July last year.
Writing in his Charting the Course newsletter, Bell addressed the question of why people should care about GDP and economic growth.
He argued that growth should not be viewed simply as an abstract economic statistic. Britain’s recent history, he said, demonstrates a close relationship between productivity, wages and household living standards.
Bell wrote:
“Weak productivity growth means wage stagnation. When GDP went missing, it was our wages that went missing too. Growth isn’t everything, but its absence hits real people hard.”
The Labour MP for Swansea West said stronger growth can help deliver the things people value most, including rising wages, greater economic security, improved public services and better opportunities for future generations.
The figures build on growth of 0.3% in June and represent the eighth consecutive period of growth when measured on a rolling three-month basis.
Read Torsten Bell’s full article, Life, the Universe, and GDP.
