Economic crisis in UK
LONDON: The UK economy once again seems to be going in recession. It has been shrink by 0.2% in the first three months of 2012.A recession is defined as two consecutive quarters of contraction. Economy shrinks by 0.3% in the fourth quarter of 2011.
Though, it was an early estimate because two further revisions in the coming months are due. Lastly in 2009 the UK economy was in recession.
Prime Minister said figures were “very, very disappointing”. He said, “I don’t seek to excuse them, I don’t seek to try to explain them away.”
He further added, “There is no complacency at all in this government in dealing with what is a very tough situation, which frankly has just got tougher.”Labour leader Ed Miliband said the figures were catastrophic.
“This is a recession made by him and the chancellor in Downing Street. It is his catastrophic economic policy that has landed us back in recession,” Mr Miliband said.
Graeme Leach, chief economist at the Institute of Directors sound optimistic and said, “It is clearly not good news, the missing link in the economy has been confidence.”
He further added, “These are relatively small falls, so we shouldn’t be too alarmist”.”[But] regardless of the figures, it is the message that comes out to business – to be cautious – exactly when we want them to be a little more aggressive in terms of recruitment and investment.”
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