Wednesday, April 27, 2011

Bloomberg:Direct Line British economy

Over the past six months, the economy in Britain close to re-recession as close as it can be, but still technically has not crossed the line. Growth in the first quarter of 0.5% offset the decline in the fourth to 0,5%. As a result, the economy has not shown any growth or decline since the third quarter of 2010. Moreover, after a decline in the fourth quarter, which ONS is associated with heavy snowfalls have been expectations that the first quarter show a strong rebound, not only because of the previous recession, but also thanks to the return of weakness in the economy late last year.

The result promises to be rough on a background of economic recovery from the recession that it is not surprising, but this growth can be slowed down after the initial burst. In fact, these developments the norm rather than the exception in the history of recessions in Britain, although recently there were few. But now most worried by the fact that the overall economy has not yet returned to pre-crisis peak. Now the volume of GDP at 4% below the maximum, for comparison the U.S. has compensated for the decline of its economy. Britain also lags behind Germany and the eurozone as a whole, both the economy below pre-crisis peaks, but they left to catch up only 1,4% and 2,9% respectively.
Reaction Sterling said that the market is really waiting anxiously even worse data, and observations of the Chancellor Osborne over the "difficult" economic situation only further fueled those fears. It can be difficult, but the situation remains fragile enough to keep the Bank of England from raising rates for awhile, at least until the economy will feel more confident.

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