Economic data released this morning shows that the UK economy has entered a technical recession. This is deemed as two consecutive quarters with negative GDP. Economists has expected slight growth, compared to the actual shrinking of the economy.
The Office for National Statistics said that the negative growth was due to a sharp fall in construction output. This is a disappointing release for the Chancellor George Osborne as the shadow of recession covers the country once again.
Some analysts were blaming the Euro-zone crisis for the fall in output as they are an important importer of UK goods.
- UK output is still 4.3% below the 2008 peak, prior to the economies collapse.
- The economy has only grown by 0.4% since this government took power nearly 2 years ago.
Following the announcement GBPUSD came off 50 pips to 1.60912
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