United Kingdom Enters to Recession in the First Quarter of 2012
The UK is again technically in recession after reporting a fall in GDP of 0.2% in the first quarter of 2012, according to preliminary data released today by the Office for National Statistics (ONS).
The British economy, which experienced a recession in 2008, recorded a contraction of 0.3% in the last quarter of 2011, which makes this second dip into recession means.
The data released today will be reviewed in the coming weeks, as it has all the economic indicators.
Over the last quarter of last year, statistics are revised downward, to confirm that the contraction of gross domestic product (GDP) was higher than expected, until that final figure of 0.3%.
After the data today, the Treasury, which had forecast a slight growth for the first three months of this year, attributed the decline to the effects of the crisis in the euro area, where problems prevent debt, according to the UK, fostering growth.
According to the ONS, the contraction in the first quarter of 2012 was due to the decrease in three years of activity in the construction sector, while manufacturing showed a flat growth.
Statistics announced today, worse than predicted by analysts, are bad news for the coalition government between Conservatives and Liberal Democrats, who yearns for signs of economic recovery continue to justify its program of drastic cuts.
Both the executive and the Bank of England expected a pickup in growth in 2012, which would have avoided falling into recession, which occurs when two consecutive quarters of contraction.
For the rest of the year, the Office of Budget Responsibility (OBR), sponsored by the present Government to oversee public finances, provided that UK GDP will grow by 0.8% overall, compared to 2% in 2013 and 2.7% in 2014.
Category: Business News
