UK gross domestic product (GDP) rose by 0.2 per cent in the first quarter of 2010, according to preliminary figures from the Office for National Statistics (ONS). Should the figure be confirmed, it would represent a slight downturn in activity since the final three months of 2009, when GDP rose by 0.4 per cent.
Commenting on the announcement, David Kern, chief economist at the British Chambers of Commerce (BCC), said the figures were "weaker than expected, but not entirely surprising.
Lower growth in the first quarter of this year compared with the last quarter of 2009 was anticipated by the BCC's Quarterly Economic Survey, and is consistent with our forecast published in March," he stated. "Although still weak, GDP has now recovered for two quarters in a row, so it is important for policy-makers to focus on ensuring that the recovery continues and a double-dip recession is avoided."
Mr Kern said that as soon as the election is out of the way, it is "critical" for a new government to put in place a credible deficit-reduction plan, allowing business to lead a sustainable recovery. Without a credible plan, there are serious risks that the fragile economic upturn will fizzle out, he claimed.
APA
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