Marginal growth sees economy still at risk

16/01/2012

Despite widespread fears of a double-dip recession in the UK, the economy actually grew at the end of 2011.

According to the National Institute of Economic and Social Research (NIESR), gross domestic product (GDP) increased, although marginally. The 0.1 per cent growth during the last three months of 2011 has, however, given rise to fears about healthy growth in the year ahead.

The economy grew by one per cent overall during 2011, NIESR has said. The Bank of England (BoE) has maintained base rates at 0.5 per cent, despite the fact that the level of growth has fallen significantly – down from 2.1 per cent growth in 2010.

However BoE is further attempting to boost economic growth by injecting an additional £75 billion into the economy.

The Office of National Statistics (ONS) has also revealed some depressing figures output from British industry has depleted by 0.6 per cent in November last year and manufacturing also fell by 0.2 per cent.

Fears have also been voiced within the finance industry that the many households which have tightened their belts and cut down on spending could actually be the very reason behind another recession.

Tags; Current UK Economy, Income Worries and Debt,

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