Commenting on the latest economic growth figures, which saw the UK economy surpass its pre-crisis peak, Robert Lloyd Griffiths, Director of the Institute of Directors in Wales, said:
“Those who warned that economic growth would be imperiled by a reduction in government spending have been as wide of the mark as those who claimed that reductions in public sector employment would never be countered by growth in the private sector.
“Recovery from credit bubbles tends to take a long time as it requires people, companies and governments to pay off excessive debts. The key is to ensure that this growth is sustainable, and here the news is very good. A recent IoD survey revealed two-thirds of IoD members expect to give pay rises either in line with or above inflation in the coming year, and that these rises will generally be tied to improved company performance. This means that UK productivity will be preserved and economic competitiveness will be enhanced.
“These hugely-encouraging figures come hot on the heels of a set of extremely positive export figures for Wales, and this welcome picture of recovery is certainly being reflected in what I am now seeing week in, week out across Wales.
“More broadly, the co-operative way in which employers and employees reacted to the downturn should be noted. Employers did their best to preserve jobs and employees did not expect pay rises they knew their employers could not afford. Throughout the downturn, job security was valued just as much as pay. The good news is that there are now strong indications that workers will soon feel the benefits of growth.
“The UK remains one of Europe’s most innovative and entrepreneurial economies, and today’s figures are testament to the hard work and resilience of British business.”
The Office for National Statistics estimates that UK GDP grew by 0.8% in the second quarter of 2014. GDP is now estimated by the ONS to be 0.2% above the peak in Q1 2008.