The UK economy grew by just 0.1% in the second quarter of 2011, according to latest revised estimates published by the Office for National Statistics (ONS) this morning. This is half the level of growth in gross domestic product (GDP) that had been reported in the preliminary estimates for the second quarter of 2011, and in the first revision (both of which had estimated that GDP rose by 0.2% in the second quarter of 2011).
The EEF's team of economists report via Twitter that ONS has cited the following reasons for the weak growth figures:
Yet a "low-growth world" could yet prove to be the best case scenario, if the pessimistic findings of a global poll of 1,031 investors, traders and analysts from Bloomberg are anything to go by. Bloomberg reports that a majority of those surveyed "anticipate Europe's debt crisis leading to an economic slump, a financial meltdown and social unrest in the next year."
This mood of pessimism is also present in new research from the CMI, which finds that more than two-thirds (68%) of its members believe that a double-dip recession is "on the cards" for the UK.
The EEF's team of economists report via Twitter that ONS has cited the following reasons for the weak growth figures:
ONS say weak GDP due to: low consumer demand; shaky labour mkt; inflation; weak global ecnmy; volatile financial mkts; low returns on savingSpeaking to the Guardian, PwC chief economist John Hawkwsworth argues that the UK economy will be lucky to achieve even 1% GDP growth in 2011:
For 2011 as a whole, it now looks likely that UK GDP growth will average 1% or less, reflecting the wide range of shocks to the global and European economies this year.The latest extremely weak data on UK economic growth make the theory that we are now in a "low-growth world" all the more plausible.
Yet a "low-growth world" could yet prove to be the best case scenario, if the pessimistic findings of a global poll of 1,031 investors, traders and analysts from Bloomberg are anything to go by. Bloomberg reports that a majority of those surveyed "anticipate Europe's debt crisis leading to an economic slump, a financial meltdown and social unrest in the next year."
This mood of pessimism is also present in new research from the CMI, which finds that more than two-thirds (68%) of its members believe that a double-dip recession is "on the cards" for the UK.
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