View more on these topics

Warnings of triple-dip recession for UK

The UK economy could already be in the midst of a triple-dip recession following the publication of today’s GDP figures.

The Office for National Statistics today confirmed the UK economy grew by 0.9 per cent in the third quarter. Following the announcement, leading economic think tanks are already claiming to have evidence to suggest that the economy will prove to have contracted in the fourth quarter.

Capital Economics chief UK economist Vicky Redwood says the outlook is far from optimistic.

She says: “GDP is still estimated to have risen strongly in Q3, but we already have plenty of evidence to suggest that the economy may have contracted in the fourth quarter. Indeed, the UK could already be in a “triple-dip”. We think that the economy will struggle to grow by a meaningful amount next year.”

Capital Economics says the UK economy is likely to have contracted by 01. per cent or 0.2 per cent over the course of 2012 and offers a revised outlook for 2013 – down from 0.5 per cent growth to just 0.2 per cent.

The Centre for Economics and Business Research also warns of the UK’s “highly fragile” economic outlook and anticipates less than 1 per cent growth next year.

CEBR senior economist Scott Corfe says: “Combined with the fact that Q3 growth was propped up by Olympic ticket sales and an extra Bank Holiday in Q2, growth looks set to be pushed back into the negative. If growth comes out negative in Q1 2013 as well – something which can’t be ruled out – then the UK would find itself in the midst of a triple-dip recession.”

Recommended

RBS Branch 480

RBS set for £350m Libor fine

Royal Bank of Scotland is set for a £350m fine for its role in the Libor rate-rigging scandal.

1

Negative outlook for Santander UK says S&P

Santander UK has been taken off CreditWatch negative by Standard and Poor’s, although the ratings agency maintains a negative outlook for the lender.

Jon Round MS blog

in my opinion: FLS won’t produce the desired results

The FLS is still tinkering around the edges of the housing problem. It requires far more stringent rules for lending the Government’s money and all of the protagonists need to work smarter

Thumbnail

Employer iPMI responsibilities could continue to escalate, says Jelf

New laws in Dubai will put the burden of providing international private medical insurance (iPMI) firmly on the shoulders of the employer in order to maintain the country’s leading healthcare facilities. With 10,000 UK nationals having moved to the country since 2007 and only 16.5 per cent of the total 8.2 million people living there being Emiratis, Jelf Employee Benefits believes this move was inevitable and employer responsibilities could continue to escalate in future.

Comments
  • Post a comment
  • peter 30th December 2012 at 6:15 pm

    ..other ice cream brands are also available…

  • jwk mpli 21st December 2012 at 5:54 pm

    the banks are not doing what they should be doing , they are withholding mortgages/ loans and increasing their balance sheets, there is a new wave of bad debt being stoked up by the current finacial polices of the gov, the recent GDP figures do not reflect the real problems which will develope if spending if cut further, now is the time to embark on wholesale housing developments this will stimulate spending provide and secure jobs in local areas,public spending is an investment for the future. the money is flowing out of the uk and that money isnt available to stimulate growth in the UK, it is the lower and middle income families who will feel the squeeze most, its time to face up to problem and for a new approach as the current financial plan will not provide the required stimulus, yes eventually we will come out of the dark but long after others.

  • Jon T 21st December 2012 at 2:46 pm

    Triple dip? They make it sound like a Ben & Jerry’s ice cream!

  • Tom Cleary 21st December 2012 at 2:39 pm

    Whilst I completely agree that this mob are doom and gloom merchants par extraodinaire, if we are totally honest with ourselves, have we ever really got out of the first recession?

  • BMH 21st December 2012 at 2:16 pm

    Capital Economics – always the bearer of good news! New employees get given some grey tinted glasses on arrival for their first day!

    The more bad news that is reported the more chance there is of bad news actually happening! It creates a spiral of doom and pessimism.

    If there was be an outright ban on the media for use of the word recession, I bet that by the end of 2013 we will all be in a better place. Think positive for once and it might get people spending!