Stagnant but no double-dip
The initial estimate of UK economic growth in the first quarter of 2011 shows a stagnant British economy but no return to a ‘double-dip’ recession.
Preliminary estimates from the Office of National Statistics (ONS) place GDP at 0.5% in the first quarter.
Analysts had expected to see growth of 0.6% to 0.7% for the first quarter. These figures could still be achieved when the figures are finalised.
This preliminary figure could be revised upwards or downwards over the coming month, as more information is obtained by the ONS.
It follows a contraction in the UK economy of 0.5% in the final quarter of last year. This fall in output was blamed on the impact of the poor weather we experienced in December.
This means that the UK economy has remained at the same size over the past six months. Whilst this is better news than a second consecutive quarter of economic contraction, it does demonstrate that the UK remains in a fragile state.
Photo credit: Flickr/Martin Bamford