FinancialAdvice.co.uk Logo

Qualified advisers answering your
Financial Questions
call 0800 092 1245

GDP figures indicate recovery could take some time

GDP figures released for the UK economy today show a 0.8% fall in the second quarter of 2009 which is significantly higher than the 0.3% contraction expected by analysts. While the fall is less than the 2.4% in the first quarter of 2009 it does bring the annual decline to a massive 5.6% and underlines the fact that the UK economy is in crisis.



Despite the fact that the UK government, in conjunction with the Bank of England, has reduced UK base rates to 0.5% and spent £125 billion on a quantitative easing program there appears little reason for joy at this moment in time. The figures were not well received on the currency markets and sterling continues to trend downwards, which is a concern. These are the worst figures for the UK economy since 1955 when records began and could impact on investor and consumer confidence which is already fragile.



As we have mentioned are numerous occasions, at this moment in time it seems that the UK economy receives one positive report and two negative reports. Each time it looks as the economy has turned for the better suddenly we are reminded that this recession is the deepest we have experienced for nearly 100 years.

Share this..

Related stories

Financial Guides

Financial Calculators

Our useful calculators can help you get your finances in order:



Latest News

Blogs

Helpful new tax year facts that could affect you and your money


Blog | Seven helpful new 2016/2017 tax year facts that could affect you and your money. Our recent online blog shares a brief outline on how to stay up to date.


Read more

Useful Links

Popular Searches

Please Enter More Details

 
Enter More Details
Continue