UK Q2 GDP final estimate due today

| September 28, 2010 | 0 Comments

The Office for National Statistics (ONS) will today issue its final reading for UK quarter two economic growth.

However, there is expected to be no revision to 1.2% growth for the April to June period.

Growth in the second quarter exceeded many expectations but growth in the second half of the year is expected to be slow, due to massive spending cuts introduced by the Government.

While many experts feared the cuts would push the UK back into recession, the International Monetary Fund (IMF) yesterday said it supported the measures, which are designed to cut the budget deficit.

However, the spending cuts and a hike in taxes will have slashed the forecast for growth, according to economists.

The IMF is forecasting growth of 2% in 2011 - however this is marginally lower than an earlier forecast of 2.1% growth.

Last week, employers’ group, the Confederation of British Industry (CBI), also revised its growth forecast for the UK’s economy.

It is now predicting the economy will grow by 2% in 2011, not 2.5% as forecast earlier this year.

However, the CBI believes the UK will not experience a double dip recession.

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