Business
Olympic Boosts British Economy
The United Kingdom’s economy emerged from recession in the three months from July to September, helped by the Olympic Games.
The economy grew by 1.0 per cent, according to official gross domestic product figures, which measure the value of everything produced in the country.
The Office for National Statistics (ONS) said that Olympic ticket sales had added 0.2 percentage points to the figures.
British Broadcasting Corporation (BBC) reported that the figures are welcome news for business and ministers, said the BBC’s economics editor, Stephanie Flanders.
“The positive ‘surprise’ in these figures is largely to be found in the service sector, which is estimated to have grown by 1.3 per cent in the third quarter, after shrinking by 0.1 per cent in the three months before,” she said.
The data also exceeded expectations from economists, who had predicted an increase of 0.6 per cent in the quarter.
The economy had been in recession for the previous nine months and has still not recovered the levels of output seen before the financial crisis in 2008.
The ONS said that beyond the effect of ticket sales, it was hard to put an exact figure on the Olympic effect, although it cited increased hotel and restaurant activity in London as well as strength from employment agencies.
The GDP figures were also enhanced by comparison with the previous three months, because the second quarter had an extra public holiday as part of the Diamond Jubilee celebrations in June, as well as unusually bad weather, which reduced growth.
“There is still a long way to go, but these figures show we are on the right track,” said Chancellor of the Exchequer George Osborne.
“Yesterday’s weak data from the eurozone were a reminder that we still face many economic challenges at home and abroad.”
Shadow chancellor Ed Balls praised the news but said that the figures “show that underlying growth remains weak”.
“A one-off boost from the Olympics is welcome,” he said. “But it is no substitute for a plan to secure and sustain the strong recovery that Britain desperately needs if we are to create jobs, get the deficit down and make people better off.”
The data is a preliminary estimate from the ONS, meaning that the third-quarter figures could be revised higher or lower.
“While the news is positive, the estimate must be put in context,” said David Kern, chief economist at the British Chambers of Commerce.
“The one per cent GDP figure for the third quarter is affected by distortions in the second quarter due to the Jubilee and Olympic ticket sales. Compared to a year earlier, the figures show that the economy is stagnant.”
The ONS said that the economy had contracted by 6.4 per cent between the start of 2008 and the middle of 2009, and had since recovered about half of that output.
The level of output in the third quarter of 2012 was almost exactly the same as it had been in the third quarter of 2011.
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Importers, market traders, and supermarket operators have therefore, been directed to immediately cease all dealings in these items and to notify their supply chain partners to halt transactions involving prohibited products.
The agency emphasized that failure to comply will attract strict enforcement measures, including seizure and destruction of goods, suspension or revocation of operational licences, and prosecution under relevant laws.
The statement said “The National Agency for Food and Drug Administration and Control (NAFDAC) has raised an alarm over the growing incidence of smuggling, sale, and distribution of regulated food products such as pasta, noodles, sugar, and tomato paste currently found in markets across the country.
“These products are expressly listed on the Federal Government’s Customs Prohibition List and are not permitted for importation”.
NAFDAC also called on other government bodies, including the Nigeria Customs Service, Nigeria Immigration Service(NIS) Standards Organisation of Nigeria (SON), Nigerian Ports Authority (NPA), Nigerian Maritime Administration and Safety Agency (NIMASA), Nigeria Shippers Council, and the Nigeria Agricultural Quarantine Service (NAQS), to collaborate in enforcing the ban on these unsafe products.
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