Press Room
Grant Thornton's chief economist assesses implications of GDP
announcement that the UK is still in a recession
Stephen Gifford, Chief Economist at Grant Thornton says,
"Today's 0.4% decrease in GDP will shock the country as many
commentators were expecting the UK to come out of a recession
today. This is depressing news for the UK as more than 18 months on
we are still in the thick of it and faring much worse than our
European neighbours."
"Households and families across the UK will continue to feel the
pain as the economy struggles out of this long and now deep
recession. It is clear that there is still a long road to tread
before the UK economy gets back to healthy growth. Whilst the UK
Government and the Bank of England have done well to avert a
colossal financial meltdown it will still take a long time to bring
back consumer confidence which is the all important factor for a
buoyant economy".
"Although new regulations being introduced to safeguard vulnerable
borrowers will help to prop up the property market, the lending
market is still very restricted and so the property market will
continue to make only modest improvements."
"With rising unemployment showing no sign of abating, the route
upwards is far from certain and any growth over the next 6 to 12
months will be patchy. Businesses will continue to face difficult
challenges with the lack of available credit. However, the Bank of
England's quantitative easing programme has undoubtedly provided
the UK with some stability and staved off deflation."