Double Dip Recession Official.
It’s official; the much-feared double-dip recession is now a reality for us all.
The contraction for January to March, confirmed by the Office for National Statistics (ONS) this morning, followed 0.3% of negative GDP growth in the final quarter of last year, resulting in the first double-dip recession since 1975.
The data baffled market expectations that the economy would grow by 0.1% in the first quarter from January to March.
The ONS said the fall in GDP was driven by the biggest fall in construction output for three years, while the manufacturing sector failed to return to growth.
In a statement Chancellor George Osbourne, said: “It’s a very tough economic situation. It’s taking longer than anyone hoped to recover from the biggest debt crisis of our lifetime.
The one thing that would make the situation even worse would be to abandon our credible plan and deliberately add more borrowing and even more debt.”
But TUC general secretary, Brendan Barber, urged the Government to change its course;
“Austerity isn’t working. The Government should look across the Atlantic and follow President Obama’s alternative that has reduced unemployment and brought growth back to the USA.”
Shadow Chancellor for the Labour party, Ed Balls, added: “We consistently warned that their austerity plan was self-defeating and that cutting spending and raising taxes too far and too fast would badly backfire.
David Cameron and George Osborne arrogantly and complacently dismissed people who warned of the risk of a double-dip recession and the country is now paying a very heavy price. Their economic credibility is now in tatters.”
According to the latest ONS figures, the services sector, which accounts for three-quarters of the economy, saw growth of 0.1% in the quarter, after a decline of 0.1% in the final quarter of 2011.
Retail sales were boosted last month by panic-buying of petrol amid fears of a tanker drivers’ strike and a heatwave encouraged people to buy summer clothes.
But the industrial production sector declined by 0.4%, with manufacturing down 0.1% after a 0.7% decline in the previous quarter – a sector which the coalition were hoping to lead the recovery of our economy.
The economic downturn isn’t expected to be as severe as the previous recession of 2008/2009, but considering everyone is completely amazed by this latest news, quite frankly, who knows??!!
What we do know at Landlord Referencing is that this is a total insight into the massive housing shortage that we’re already experiencing as a country and predictions for the future of the private rented sector. We’re already seeing a notable increase in rental property prices, rises in rents, rises in sub-dividing homes AND massive rises in rent defaults and property damages.
Some may say the only way to handle this, apart from the coalition shelving their hair-brain schemes, is for the Government to invest ten billion pounds into the Royal Bank of Scotland (the bank it now owns) and then to make sure the money is lent out at a low interest rate to our countries businesses – to build on our GDP.
The current government has shown no desire to understand the ordinary lives or needs of their voters – as one of their own party voiced earlier this week; MP Nadine Dorries described her party’s leadership as “two arrogant posh boys who don’t know the price of milk “ on BBC2’s Daily Politics Show – so now is the time for us all to work together; for the sake of our future, our children’s future, and so on.
With Landlordreferencing.co.uk still growing and our economy and housing stock shrinking can you afford to be the last one to join us?