Zero growth for British economy in second quarterSeptember 30th, 2008 - 8:43 pm ICT by IANS
London, Sep 30 (DPA) Forecasts of a static economy in Britain were confirmed Tuesday when figures showed that there was no growth in output in the second quarter of 2008.Data from the Office for National Statistics (ONS) showed economic output remained the same as in the first quarter, when growth was put at 0.3 percent.
Year-on-year, output was revised up to 1.5 percent from a previous estimate of 1.4 percent.
The quarterly figures were the worst for 16 years.
“We continue to think that the British economy is poised for a recession and a prolonged period of weak activity as the excesses of the last decade unwind dramatically,” said Paul Dales, an analyst at Capital Economics.
At the same time, ONS figures showed a worrying rise in the current account deficit - the difference between imports and exports - to 11 billion pounds ($20 billion) in the second quarter of 2008.
The comparative figure for the first quarter was 5.49 billion pounds.
“The negative surprise on the current account highlights the vulnerability of the British economy to external flows. At a time of a global drain of financial liquidity, this is worrying,” said Lena Komileva, an analyst at Tullett Prebon.