Great Recession declared over – so why don’t we feel like it is?

The “Great Recession” is over, according to new figures.

The National Institute of Economic and Social Research (NIESR) has said GDP will grow 2.9% this year, and 2.4% a year between 2015 and 2017.

If this is accurate, it means April’s GDP has already exceeded pre-recession levels.

Britain’s economy has grown at the fastest rate in more than six years, after figures showed output rose 3.1% in the first quarter of this year, compared with the same period in 2013, according to the Office for National Statistics.

GDP also rose by 0.8%, buoyed partly by growth in the manufacturing and trade industries.

So why are Brits still feeling the pinch?

That could be down to the UK’s GDP per capita, which is lagging behind GDP.

GDP per capita is a measure of the size of the country’s economy divided by the number of people living there.

Put simply, while our economy has grown, so has our population, so the effects of any growth are spread out among more people.

GDP per capita will not reach pre-recession levels until 2017, NIESR estimates, meaning we’ve got a long wait before the cost of living seems to be the same level as before 2008.

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