Chancellor George Osborne claims 'Britain is coming back' with best economy for years #CarryGobySeanKellz #FutureGroupNG via @myentertain9jar

THE economy is growing at its fastest rate for six years, leading Chancellor George Osborne to say yesterday: “Britain is coming back”.

Chancellor George Osborne claims 'Britain is coming back'[GETTY]

GDP leapt by 0.8 per cent in the first three months, making it the first time there had been five successive quarters of growth since pre-crash figures in 2007.

Manufacturing, construction and services posted the best year-on-year growth since before the financial collapse – up 3.1 per cent on the same period last year.

Mr Osborne said the official figures were a vindication of his austerity measures – despite last year’s dire warnings by the International Monetary Fund.

He said: “Today’s figures show that Britain is coming back – but we can’t take that for granted. For the first time in a decade all three main sectors of the economy have grown by at least three per cent over the last year.

“The impact of the great recession is still being felt but the foundations for a broad-based recovery are now in place.”

Economists nickname this a “Goldilocks” scenario, which is neither too hot nor too cold.

The impact of the great recession is still being felt but the foundations for a broad-based recovery are now in place

George Osborne

There is solid growth but it is not strong enough to prompt a hike in interest rates or stoke fears of inflation.

Howard Archer, chief European and UK economist at IHS Global Insight, said Britain was now “back within touching distance” of pre-crash levels of activity. The figures, by the Office for National Statistics, show the powerhouse services sector, which represents three-quarters of Britain’s economy, grew by 0.9 per cent in the first quarter.

Even construction – dampened by storms and heavy rain – expanded by 0.3 per cent.

Yesterday’s news added to the economic cheer for the Government after figures showed pay was rising faster than inflation for the first time since 2010.

Bank of England governor Mark Carney said: “There is every sign that the recovery is starting to broaden out. I would describe our attitude at the moment as prudently optimistic.”

 

The update comes a year after fears that Britain was about to plunge into an unprecedented “triple-dip” recession and the International Monetary Fund’s Olivier Blanchard warned Mr Osborne was “playing with fire”.

Now the IMF has backtracked and expects Britain to be the world’s fastest-growing major advanced economy in 2014. It forecasts 2.9 per cent growth.

But shadow chancellor Ed Balls said: “Millions of hardworking people are still feeling no recovery at all.”

In a fiery Commons clash, Mr Osborne urged Mr Balls to apologise to the British public for wrecking the economy while in government. Referring to Mr Balls’ recent car accident, Mr Osborne said: “You have apologised to the lady whose car you crashed into, why don’t you apologise to the British people?”