‘Double-dip – Official, As Current Slump Lasts Longer Than 1930s Recession’
Commenting on the Office for National Statistics’ preliminary estimate of UK Gross Domestic Product in the first quarter of 2012, KPMG Chief Economist, Andrew Smith, said:
“It’s official, we’re in a double-dip.
“The 0.2 percent fall in GDP in the first quarter, coming on the back of the 0.3 percent decline at the end of last year, confirms that the UK moved back into technical recession over the winter.
“But worse, output remains broadly unchanged from its level in the third quarter of 2010 and, four years on from its pre-recession peak is still some 4 percent down– making this slump longer than the 1930s Depression.
“Looking ahead, output is expected to remain weak in the second quarter and with extra holidays, the Jubilee and the Olympic Games distorting the picture over the summer it will be some time before the underlying picture is clear. But even if activity recovers in the second half, overall this looks like being – at best – another year of weak growth, held back by squeezed real incomes and public spending cuts. Recovery postponed (again).”