UK economy shrinks at fastest rate for 30 years
The gross domestic product figure for the UK economy fell by 1.9% in the first quarter of 2009 which is the steepest fall for 30 years. Analysts had expected a fall of around 1.5% and the figure of 1.9% has shocked many and put further pressure on Alistair Darling's economic forecasts as presented in the budget. This is an even bigger fall than the 1.6% seen in the final quarter of 2008 which confirmed the U.K.'s entry into recession.
While the UK authorities continue to cling to hopes that the UK economy will recover in the latter part of 2009 and then go on to positive ground in 2010 there are many who now believe these figures, released earlier this week, are way out of sync with the real economy. If Alistair Darling and Gordon Brown are forced to revisit their economic forecasts in November, and next April, this will blow apart the reputation for prudence which Gordon Brown had built up over the last decade. These are very worrying times for the Labour government and despite attempts to try and talk up the economy and bring forward the recovery there are many who are disbelieving of the figures released by the Treasury.
Share this..
Related stories
Cadbury shares in demand
Cadbury shares today rose by 6p to £7.93 ahead of a trading statement from the company which will be vital in its ability to fight off an ongoing takeover approach from Kraft Foods. This is a situation which has been ongoing for some time now and is set to come to a head over the next few weeks with Kraft Foods under pressure to either "put up or shut up" after a ruling by the takeover and merger...
Read MoreUK economic downturn worst since 1980
Official figures released by the Office for National statistics have dismayed many economic experts and confirmed that the UK is officially in recession. It has been revealed that in the final three months of 2008 the UK economy contracted by 1.5% and when added to the 0.6% fall in the third quarter of 2008, there was a combined fall in the economy of 2.1% in the second half of 2008. This is offic...
Read MoreIBM looks to close final salary UK pension scheme
Computing giant IBM has today announced the beginning of a 60 day consultation with members of its final salary pension scheme in the UK. The 5000 members (representing about one quarter of the company's workforce) will hear plans to enhance current defined benefit payments and ultimately close the scheme altogether.
If these proposals are rubberstamped, as seems highly likely, the...
Was self regulation behind the weakening UK economy?
As the UK government and regulators look to the future, more and more people are looking back over the last 10 years trying to identify how the UK economy was so exposed to the worldwide economic downturn. Despite assurances by the government and the regulators that everything possible was done to avoid such a situation, the subject of self-regulation has risen its head on a number of occasions.
Gordon Brown refuses to apologise for recession
Gordon Brown is set to ignore an opportunity to apologise to the UK public during his speech to Congress. Despite a number of Labour MPs suggesting the time is right for the UK government to apologise for the debacle which is the UK economy it seems that Gordon Brown does not know the word "no". Many believe this could be the final nail his political coffin as the knives seem to be out within the...
Read More