BBC News Interview to Chancellor George Osborne

A- Answer the questions below.

1) According to Chancelloer Osborne. What was the current state of

economy and what were its prospects back then?

2) What is it that does not happen overnight?

3) Why does the interviewer asks if the Chancellor has lost all justification
for his austerity programme?

B - The words below were used in the interview. Explain the context
in which they were produced.

Figures
Sign
Tough
Broadly flat
Significantly smaller
Recession
On record
Making progress
Bond markets
Low interest rate
Deficit
Dealing with debt

C- Complete the article about the information given in the interview

with the vocabulary items missing.

The UK economy has avoided f_______ back into a recession after

recording faster-than-expected g_________ in the first three
months of the year.

The Office for National Statistics said its first estimate for gross domestic
product (GDP) showed the economy grew 0.3% during the first quarter of 2013.

Chancellor George Osborne said it was an "e______________ sign".

But the shadow chancellor, Ed Balls, said that the economy was "just back to
where it was six months ago".

The growth in GDP means the economy avoided two consecutive quarters of
contraction - the definition of a r__________. There had been fears the UK
would enter its third in five years, a so-called triple-dip recession.
Economists say the news should give a small psychological boost to consumers
and businesses, but the broader picture of the economy r__________ the
same.

The UK economy has been on a plateau since the financial crisis h____ in
2008, with small spurts of growth and contraction.

'Making progress'
The better-than-expected r______ in GDP for the first quarter was largely
down to strong growth in the services sector and a recovery in North Sea oil and
gas output.

The ONS f________ also showed that GDP had risen by 0.6% when compared
with the first quarter of 2012, the strongest year-on-year i________ since the
end of 2011.

Chancellor George Osborne said: "Today's figures are an encouraging sign the
economy is healing. Despite a tough economic backdrop, we are making
p________. The deficit is down by a third, businesses have created over a
million and a quarter new jobs, and interest rates are at record l_______.

"We all know there are no easy answers to problems built up over many years,
and I can't promise the road ahead will always be smooth, but by continuing to
confront our problems head on, Britain is recovering and we are building an
economy fit for the future," he added.

Matt Basi, from CMC Markets UK, said: "Growth of 0.3% is hardly cause for
celebration, but may ease some of the pressure that has been piling on the
government's a__________ plans."

The chancellor has faced calls from the International Monetary Fund to rethink
the pace of the austerity programme.

But the government insists its austerity measures are vital to bringing down
borrowing, and guarantee growth in the long-term.

Poor growth has already led to two international credit rating agencies stripping
the UK of its top-notch triple-A rating.

Shadow chancellor Ed Balls said: "If we're to have a strong and sustained
r_________, and catch up all the ground we have lost over the last few years,
we need urgent action to kick-start our economy and strengthen it for the long-
term - as Labour and the IMF have warned."

Strong services
The pound rose nearly 1% to $1.5414 against the US dollar on the news, its
highest p________ in two months.

The services sector, which accounts for three-quarters of the economy, grew by
0.6% in the quarter, with a strong performance from hotels and restaurants.

Transport and communications also made a solid contribution with growth of

1.4%.

But there were some areas of continuing weakness. Construction activity

f_____ 2.5% in the first quarter and remains more than 18% l_____ than it
was before the start of the financial crisis in 2008.

Phil Orford, the chief executive at the Forum of Private Business said: "While
the service sector looks to have led the way, the construction industry figure is
more worrying, and shows the need to get projects moving at a quicker pace."

Vicky Redwood, UK economist at Capital Economics said the recovery still faced
"significant obstacles ahead, with households still experiencing falling real pay
and policy makers still struggling to get bank lending to rise".

"Today's figure offers some hope that things might finally be starting to move in
the right direction again," she added.

The economy has still not recovered from what has been the longest and deepest
recession in modern history.

O_______ the size of the economy as a whole remains 2.6% smaller than its
pre-recession p_____ (=highest/lowest point). Its pace of growth has also been
much slower and weaker than in previous recessions in the UK