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Britain’s Economy Remains In Recession

From BBC News:

UK economy remains in recession

December 22, 2009

The UK economy shrank by 0.2% between July and September, figures show, an upward revision to the previous estimate of a 0.3% contraction.

It means that officially the recession has not yet ended. Analysts believe that fourth quarter figures will show the economy returning to growth.

The news disappointed those who had expected a contraction of 0.1%…

The first GDP estimate for the third quarter had shown a contraction of 0.4%, but this has been revised twice, first to a 0.3% contraction and now to -0.2%.

Funny how the British have to revise their figures for the better. Unlike the practice in the US, under Obama.

However, the fact the economy had shrunk during the third quarter of 2009 took many analysts by surprise when the initial figures were released.

Many had expected the UK economy to return to growth during that period, and some still believe that they may yet be proven right.

"We are expecting this number to be revised upwards and this will eventually be seen as a growth quarter", said Amit Kara from UBS. "The big picture is that the economy is recovering… we see growth at 1.8% next year."

Clearly economists are the same the world over. Or at least, the ones consulted by the news media.

Though, come to think of it, maybe they aren’t so identical, after all:

BBC economics editor Stephanie Flanders said: "There is at least one piece of encouraging news in today’s release: the household savings ratio in the third quarter rose to 8.7% of income, compared to 7.6% in the previous three months."

She said it was important for savings in the economy to go up to put the recovery on a more sustainable footing.

The household savings ratio is the percentage of disposable income that is saved.

Analysts say the high level of household debt in the UK must come down in order to make the economy more balanced. However, while overspending was one of the factors contributing to the credit crunch, it is important for the recovery that consumers do not cut back their spending too sharply.

Isn’t that odd?

In our country the media tells us that the recovery is suffering precisely because consumers are refusing to spend.

So which is it?

This article was posted by Steve on Tuesday, December 22nd, 2009. Comments are currently closed.

2 Responses to “Britain’s Economy Remains In Recession”

  1. proreason says:

    “So which is it?”

    It depends on whether or not the fascists are in power.

    When they are, the answer is whatever the fascists tell the whores in the press..

  2. MinnesotaRush says:

    More proof that these nitwits havent got a clue!

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