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UK GDP slumps 0.7%

July 25, 2016

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Throw a dart at any European country the a map and you’ll find economic struggle it seems; we’re no different.

On Wednesday, the official report from the Office for National Statistics (ONS) will confirm that we’re experiencing the worst double dip recession for 50 years.

money £50 notes sterling

Image via wwarby

Not only that, but the figures are worse than once thought. GDP – a broad measure for the economy – shrank by 0.7% between April and June; forecasters had predicted 0.2%.

So what’s caused the dramatic fall? The extra Bank Holiday for the Queen’s Diamond Jubilee and the wettest April to June period since records began. Both have slightly skewed the figure, and next period’s report is also likely to be misleading due to the Olympic Games taking place.

There is some hope that these first estimations from the ONS will be revised in the coming months, but there’s no getting away from the fact that the country is in serious economic trouble.

More fingers and magnifying glasses will be pointed once again at Chancellor George Osbourne’s austerity measures. Osbourne has defended his plans by suggesting that the country has made progress by cutting the deficit by 25% while 800,000 new jobs have been created.

With such poor results, the Bank of England will look to throw more emergency money into the economy or drop interest rates yet again.

As always, the Twittersphere is rife with debate. Less of a debate actually as everyone is lamenting the Chancellor…

 

 

 

Is there a Bat signal for Gordon Brown? Meanwhile, Robert Peston tries his best as always to keep morale high…


Others found a funny side…

 

 

What do you make the new slump? Should George Osbourne step down? Tell us in the comments section below.

 

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