Skip to main content

UK GDP hit by bad weather


Britain's economy shrank by 0.5 per cent in the last quarter of 2010, figures reveal, raising fears of a double-dip recession.

The Office for National Statistics said December's severe winter weather was largely to blame for the surprising figures, which show the first contraction of growth since the third quarter of 2009.

"The disruption caused by the bad weather in December is likely to have contributed to most of the 0.5 per cent decline, that is, if there had been no disruption, GDP would be showing a flattish picture rather than declining," it said in a statement.

Analysts had previously been expecting modest growth of 0.4 per cent for that quarter.

The figure is likely to spark concerns over the strength of the British economy as the coalition government brings in a raft of austerity measures aimed at curbing the country's national deficit.

The measures include dramatic cuts to public services including hundreds of thousands of public sector job losses.

George Osborne, the country's finance minister, said the figures were "disappointing" but that the country would "not be blown off course by bad weather".

``It's notable that sectors of the economy that are less affected by the poor weather, such as manufacturing, continue to perform strongly, helping to rebalance our economy," he said,

Northern Europe was badly affected by severe snow and ice last month, causing major air, road and rail disruption.

Comments

Popular posts from this blog

India film industry contributes $6.2 billion in year

India's film and television industry contributes an immense $6.2 billion (Rs 28,305 crores) to the Indian economy, according to a new report released by PricewaterhouseCoopers. The report, titled Economic Contribution of the Indian Film and Television Industry, also finds that the sector has a total gross output of $20.4 billion (Rs 92,645 crores) and contributes more to the GDP of India than the advertising industry. "This report demonstrates the importance of the film and television sector to the overall growth and vitality of the Indian economy. Indians should be proud of the staggering growth that the film and television industry has achieved," said Motion Picture Association of America (MPAA) chairman Dan Glickman, who launched the report in New Delhi at the Asia Society Conference. "The film and television industry in India is one of the world's largest markets in terms of number of consumers and offers significant growth potential. Over the past fe...

BGB from BDR

No more BDR! Bangladesh Rifles (BDR) has officially been named after Border Guard of Bangladesh (BGB) today, January 23, 2011.  The renaming, though came into effect after the president signed the bill passed through parliament over a month ago, came on Sunday after prime minister Sheikh Hasina hoisted the BGB flag at its Peelkhana headquarters.  The flag has also been changed a little bit.  Bangladesh's 'first line of defence' went through a few changes, including its name and uniform, with a new law stipulating death for mutiny, apparently to absolve it of the bloody mutiny of Feb 25-26, 2009.   Parliament passed the bill, which was subsequently endorsed by the president on Dec 20 last year , bringing the changes in BDR to rid it of the stigma that would invariably be attached to its name.  But Maj Gen Mohammad Rafiqul Islam at a function on Jan 1 used his old designation as head of BDR since, according to him, 'formalities' to call him the BGB direct...