UK GDP shows worst quarterly fall in 30 years
It has been revealed that the UK economy fell by an alarming 1.6% in the final quarter of 2008 which is the worst quarterly fall in 30 years. Initially there were expectations of a 1.5% fall but these figures were revised downwards by the Office of National Statistics after a review of the case data. This is an alarming fall for the UK economy and many people now suspect that the situation will get very much worse before it improves, causing more mayhem and misery for the UK population.
It seems as though the ongoing reduction of UK base rates has had limited impact as yet and there is very little sign of a recovery in either the mortgage market or the property market as a whole. When you also throw in the fact that UK national debt is set to hit record levels and the debt of the UK consumer is also near an all-time high the situation looks very difficult to say the least in the short to medium term.
Despite significant rescue plans and fiscal stimulus programs there has been no visible benefit to the UK economy as yet and many people are concerned that funds invested may have been "wasted". However, despite the collapse in the UK economy Gordon Brown and Alistair Darling are still adamant their plans will work and the UK economy will soon move out of recession.
Share this..
Related stories
Who would benefit most if interest rates fell to 0%?
As the banking sector continues to hold firm in maintaining and improving profit margins there would appear to be some confusion as to who would benefit most if UK base rates, as expected, fall to around 0%. Many of the UK banks have already come out and stated they will not pass on any more interest-rate reductions to their tracker mortgage customers, which has prompted a controversial debate. Wi...
Read MoreJohn Lewis brings an air of reality to the retail sector
Despite signs that the retail sector is on the up and up, UK bellwether John Lewis has today brought many analysts and many investors back down to work. The company is forecasting a "fragile" year ahead in 2010 and believes that while the economy has shown signs of recovery in the last few months, confidence is still very fragile and could be impacted by unforeseen negative events in the short to...
Read MoreBank tipped to make 0.25% cut to base rate
Analysts are tipping the Bank of England's monetary policy committee (MPC) to cut interest rates this week, amid signs of an economic downturn. The MPC is expected to trim rates by 0.25 per cent, bringing the key base rate of interest to five per cent. Factors informing the decision are thought to include signs that the housing market is softening - as born out by a study from the Halifax yesterda...
Read MoreWhen will we know the recession is over?
Industrial output figures for October were released today with many analysts dismayed by the lack of growth in the UK economy despite hopes that the final three months of 2009 would bring in a new era for the UK business arena. This now begs the question, when will we know the recession is actually over? We have seen many contradicting figures over the last few months indicating the UK economy...
Read MoreBritish Airways looks to take union talks to the wire
British Airways is looking to bring in the conciliation service ACAS as its ongoing discussions with the unions reached deadlock. The company has been undergoing a significant cost saving exercise over the last few months although the final push, which would see a pay freeze for at least two years and up to 3000 additional redundancies, appears doomed to failure. However the company is claiming th...
Read More