The Office for National Statistics revised down GDP results for the first quarter, confirming that the country has entered a recession.
Today marks the second estimate of the UK’s first quarter GDP results after the ONS provided a preliminary estimate in April. The first estimate suggested a contraction of 0.2 per cent had occurred over the three months ending March 31.
This latest estimate confirms the economic contraction in the first quarter was worse than expected at 0.3 per cent.
Since these results follow a contraction of 0.3 per cent in the final quarter of 2011, the UK can officially be considered back in recession.
In its review of the UK economy, the IMF suggested further rounds of quantitative easing alongside a cut in the base rate would prove effective in terms of boosting growth.Chancellor George Osborne meanwhile has reaffirmed the government’s commitment to deficit reduction through austerity measures as the most feasible means of generating a recovery.