News > POA

London 2012 helps lift Britain out of recession Back To Main

insidethegames

October 25 - The London 2012 Olympic and Paralympic Games have helped lift Britain out its longest double-dip recession since the Second World War according to figures from the Office for National Statistics.

The economy grew by 1.0 per cent in the three months from July to September when the Games took place to give Britain its best growth figures for five years.

Before the statistics were released this morning, growth of around 0.6 per cent had been forecast after a 0.4 per cent decline in the previous quarter.

Of the 1.0 per cent growth, Olympic and Paralympic ticket sales contribute 0.2 per cent.

"We still have a long way to go and there are still difficulties ahead, but I think these figures do show that we are on the right track," said Prime Minister David Cameron.

"We have got the right approach."

Prime Minister David Cameron (C) has continually talked up the economic benefits of hosting the London 2012 Olympics and Paralympics since taking up office in 2010

However, Shadow Chancellor Ed Balls warned that Britain shouldn't fall into a false sense of security because of the economic boost provided by the London 2012 Games.

"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 growth figures come after the Government revealed earlier this week that London 2012 is set to come in £377 million ($603 million/€463 million) under budget.

It has forecast the entire cost of the Games will be £8.921 billion ($14.26 billion/€10.96 billion), translating to a saving of £377 million ($603 million/€463 million) on the £9.298 billion ($14.87 billion/€11.43 billion) budget that was set out in 2007.

Contact the writer of this story at tom.degun@insidethegames.biz