Figures from the International Monetary Fund (IMF) predict British GDP will have increased by 3.4% between Q4 2013 and Q4 2014. This would reveal that the UK economy is growing faster than any other economy as global growth stands at 3.3%.
Despite slow growth in the Eurozone, Russia and the US, the UK is doing very well with figures showing it is the strongest growing advanced economy by far. Canada, for example, is showing a growth of only 2% year-on-year.
The Office of National Statistics (ONS) has also reported today that the economy has grown by 0.8% in Q2 this year. The UK is now 0.2% better off than before the financial crisis in 2008.
Chancellor George Osborne hailed the news, stating: "Thanks to the hard work of the British people, today we reach a major milestone in our long-term economic plan."
So what is happening?
Private sector employment is up, house prices are strongly up, manufacturing is strong and interest rates are low. All this is good news. Strangely though is the fact that net lending to the business sector by banks is down. Of course, the reason for this is that other lenders such as crowd funding, alternative lenders and asset based lenders are enjoying a resurgence. Millions are being raised through Funding Circle and Crowd Cube but these are only the tip of the iceberg. Now even PayPal are going to start lending to businesses.
The real elephant, which has not yet entered the room but is crashing about in the garden trying to get noticed, is Mark Carney who is warning about interest rate rises and a possible housing bubble. I think that interest rate rises will not derail the recovery as they are really only a tool to stop overheating and they will only rise when the economy is doing even better. It will be events in Europe and China that will ultimately affect us the most.