In-Briefs

UK Double Dip Recession Worsens

July 26, 2012
| Economics
| Europe
The UK’s Office for National Statistics (ONS) said that UK GDP fell by 0.7% from April to June . . . the decline was largely due to the domestic economy since exports rose 2%. . . . a 5.2% fall in output of the construction sector and the effects of poor weather and an extra June bank holiday shoulder some blame for the declining numbers. . . Prime Minister David Cameron and Chancellor George Osborne continue to blame the eurozone crisis for the continued economic recession . . . the ONS pointed to few positive signs, such as the 181,000 jobs added during the past three months, but stated the output of the economy is still 4.5% lower than at its peak before the beginning of the financial crisis . . . the Olympics should provide some short term economic boost to the UK this summer, however after its service jobs end, unemployment will rise again . . . the Prime Minsiter and Chancellor will try to highlight growing UK exports, but will only be able to shift blame to the eurozone for so long . . . the government will start to hear calls to end tough austerity measures to help the stumbling economy, but it is unlikely to do so . . . it is more likely the Bank of England will lower intrest rates to 0% and the government will consider further targeted tax cuts.  
 
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