Gordon Brown shocked as recession continues
Today's GDP (Gross Domestic Product) figures for the UK issued a shock to Gordon Brown with confirmation that the UK economy fell by 0.4% in the third quarter against analysts hopes of a rise of 0.2%. A growing number of economists were certain that the UK was pulling out of the recession and would finally wave goodbye to the bad times and return to the growth path. So what does this mean for the UK economy?
The UK economy has now contracted for six consecutive quarters and despite the fact that countries such as France, Germany and Japan are pulling out of recession the UK is still under a cloud. With only a few months to go until a general election in the UK this is a body blow for Gordon Brown and a disastrous move for UK taxpayers, UK businesses and UK consumers.
Quite how economists have got the situation so wrong is a surprise to many because a fall of 0.4% in the third quarter against expectations of a rise of 0.2% is poles apart. This prolonged recession will also see UK unemployment continue to rise for the foreseeable future adding pressure to the UK benefit system, UK income tax receipts and consumers in general.
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