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Things Don’t Look As Bad for UK’s Economy

in International Business

Things Don’t Look As Bad for UK’s Economy

A revised data from the Office for National Statistics (ONS) showed that UK’s economy contracted by 0.5% during the second quarter, less than the 0.7% predicted last month.

The construction sector had better productivity than thought. The output from the construction sector fell by 3.9% during the April-June period compared with the previous quarter, compared with an earlier forecast of a 5.2% drop.

Looking at the bigger picture, the revised data is not totally a good sign for UK’s economy. The economy is still more than 4% below its pre-recession peak.

Analysts expect the country’s GDP to spike up partly due to the impact of the Olympic games. A rise in consumer and government spending, as well as the boost from ticket sales that will be recorded in the July to September quarter should lift growth.

UK has been in a recession since the past three quarters.

British Labor Co-operative politician, Christopher Michael Leslie, proposed a temporary cut in the Value Added Tax (VAT) to help consumers and a levy on banker’s bonuses to help funds job programs for the young.

There have been questions about why the economy is shrinking when unemployment is falling in the UK.

Joe Grice said that one reason for this anomaly is the move to part-time work, which had also affected the “productive capacity” of the economy.

Tags assigned to this article:
Uk economyUK GDPUK recessionUk's economy

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