UK Double Dip Recession 2012
UK's Double Dip Recession, Worst in Modern History, Shocks Many
Just released GDP estimates from the Office for National Statistics have come in over three times worse than forecast, at a 0.7% (2.8% annualized) contraction, verses expectations of a mild 0.2% (0.8% annualized) decline.
While "only" the most recent three quarters were consecutively negative, GDP in the UK has actually now declined for five out of the past seven quarters.
Not exactly sure why this is so shocking. Attempt a recovery from a recession that was worse than what the UK experienced in the 1930s by joining with your trading partners in implementing austerity, and, what, this is a shocker? Seriously?
UK economy smaller than when Cameron took office
The UK’s double-dip recession has deepened sharply and unexpectedly, leaving the economy smaller than it was when the coalition government took office two years ago.
George Osborne, the chancellor, said the country had “deep-rooted economic problems” after official data estimated that output fell 0.7 per cent between the first and second quarters – much more than the 0.2 per cent fall forecast by economists. “We’re dealing with our debts at home and the debt crisis abroad,” he said.
However, critics of Mr Osborne’s austerity programme, which aims to eliminate the structural current deficit in five years, said the data showed his efforts were self-defeating.
“As we warned two years ago, David Cameron and George Osborne’s ill-judged plan has turned Britain’s recovery into a flatlining economy and now a deep and deepening recession,” said Ed Balls, shadow chancellor for the Labour party...
Wall Street Journal
U.K. Stumble Fuels Austerity Debate
Britain's GDP Shrank 0.7% in Second Quarter, Raising Pressure on London and Sharpening Dispute on Cuts Vs. Stimulus
LONDON—The U.K.'s economy suffered a much larger contraction than expected in the second quarter, heightening questions about the pace and effectiveness of the government's austerity program and fueling the broader debate across Europe about how to tackle the Continent's economic woes.
The deteriorating British economy is likely to intensify the debate both within the U.K. and other debt-laden countries in the West about cuts versus stimulus, amid increasing evidence that austerity is proving a major drag on growth.
"In the growth versus austerity debate it will boost the growth camp and the argument that it isn't the right time...
Liverpool Daily Post
Critics round on Osborne after figures reveal longest UK double-dip recession
THE UK’s recovery hopes were dealt a further blow after shock figures showed the economy shrank by a worse-than-expected 0.7% between April and June.
Dire construction and manufacturing output drove the biggest decline in GDP since the height of the financial crisis three years ago, alarming forecasters who had expected a much smaller 0.2% fall...
Although the figures are a preliminary estimate and may be revised, they show the UK economy has now contracted for three quarters in a row, making it the UK’s longest double-dip recession since quarterly records began in 1955.
The last double-dip recession was in the 1970s, when the economy was hamstrung amid soaring oil prices and a miners’ strike, but that lasted only two quarters...