Economy tracker: GDP

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BBC's Declan Curry explains just what GDP stands for and why we should care

The UK economy grew by slightly more than previously thought in the second quarter of 2014, according to the Office for National Statistics, which has revised up its earlier estimate of 0.8% to 0.9%.

Revised ONS figures also show the UK economy surpassed its pre-recession peak in the third quarter of 2013.

Previously, this was thought to have been achieved in the second quarter of 2014.

Understanding GDP:
  • Gross domestic product is a measure of a country's economic activity, including all the services and goods produced in a year
  • It is based on a huge survey of businesses and government departments compiled by the Office for National Statistics
  • An economy is generally considered to be in recession if it has contracted for two consecutive quarters
  • The first figures for any quarter are known as the "flash estimate" as they are based on incomplete data. The figures are revised at least twice as more information is collected

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