Recession fears as economy shrinks
Posted on 5:14pm Sunday 10th Jul 2011
Recession fears as English economy shrinks
Britain’s economy has shrunk over the past three months, according to City experts, piling more pressure on minister’s as they drive through the coalition’s programme of cuts.
Economists believe that official GDP figures later this month will reveal that the economy contracted by 0.2% between April and June, after recording growth of 0.5% in the first quarter of the year.
Official measures of GDP published by the Office for national Statistics have consistently proved even gloomier than City predictions in recent quarters.
The experts’ forecasts will revive fears that Britain will re-enter recession, which is defined as two consecutive quarters of negative growth.
George Osborne, the Chancellor, may try to blame the Japanese earthquake, a late Easter and the Royal wedding break.
Critics will say the Chancellor also blamed temporary factors for weak growth in the final quarter of last year, when unseasonal snowfall was cited.