Economic Recovery

HC Deb 27 October 1983 vol 47 cc182-3W

45. Mr. Knox

asked the Chancellor of the Exchequer whether there have been any further signs that the economy is recovering from the recession.

Mr. Lawson

There are clear signs that the recovery is under way. The average measure of GDP was over 3 per cent. higher in the first half of 1983 than a year earlier and over 5 per cent. higher than in the trough of the recession in the first half of 1981.

49. Mr. Winnick

asked the Chancellor of the Exchequer when he now expects to see a substantial improvement in the economy.

Mr. Lawson

The last two years have seen a major reduction in inflation and a clear recovery in output. In the first half of this year the average measure of GDP was over 3 per cent. higher than a year earlier and over 5 per cent. higher than in the first half of 1981, the trough of the recession. Over the same period, inflation^* has fallen from 12¼ per cent. in the first half of 1981 to 5 per cent. in September 1983. ^* RPI changes on a year earlier.