Skip to comments.UK Slides Back Into Recession in First Double Dip Since 1970s
Posted on 04/25/2012 9:47:43 AM PDT by NormsRevenge
Britain's economy slid into its second recession since the financial crisis after official data unexpectedly showed a fall in output in the first three months of 2012, piling pressure on Prime Minister David Cameron's embattled coalition government.
The Office for National Statistics said Britain's gross domestic product fell 0.2 percent in the first quarter of 2012 after contracting by 0.3 percent at the end of 2011, confounding forecasts for 0.1 percent growth.
Most economists had expected Britain's $2.4 trillion economy to eke out modest growth in the early 2012, but these forecasts were upset by the biggest fall in construction output in three years coupled with anaemic service sector growth and a fall in industrial output.
Wednesday's figures will be a deep blow for Britain's Conservative / Liberal Democrat coalition, which has slid in opinion polls since a poorly received annual budget statement in March and risks embarrassment at local elections on May 3.
The government is also under pressure over revelations about its close relationship with media tycoon Rupert Murdoch.
The government desperately needs growth to achieve its overriding goal of eliminating Britain's large budget deficit over the next five years.
Britain's economy contracted by 7.1 percent during its 2008-2009 recession and recovery since has been slow, with headwinds from the euro zone debt crisis, government spending cuts, high inflation and a damaged banking sector.
(Excerpt) Read more at cnbc.com ...
Gee, there's a partnership that seemed destined for success. /s
Obviously, gay marriage is the solution to this problem.
Hmmm... Perhaps they should resume production of the Austin Princess.
The British government simply isn’t spending enough. /SAR
The Tories didnt win a majority. They could have governed alone, but as a minority govt, and the last time that happened (Harold Wilson 1974), it wasnt exactly a roaring success. By co-opting the Lib Dems, the Tories have had to water down their policies somewhat, but also have neutered Lib Dem opposition.
So far the Coalition imo is working, albeit with some errors and problems.