UK Q4 GDP final reading due this week

| March 28, 2011 | 0 Comments
”UK

The Office for National Statistics (ONS) will tomorrow publish its final reading of gross domestic product (GDP) for the fourth quarter of 2010.

In January, the ONS revealed the UK economy contracted by 0.5% in the October to December period.

Last month, the figure was revised down further to 0.6% with bad weather being attributed to the poor growth figures.

The third and final estimate, due tomorrow, is expected to remain unchanged.

The shock contraction led the Office for Budget Responsibility (OBR) to lower its 2011 economic growth forecast to 1.7% from its previous estimate of 2.1%.

Meanwhile, the spending cuts introduced by the Coalition Government are expected to hamper growth, according to many economists.

The cuts have received mixed responses; many have been critical of them warning that slashing the deficit too quickly could pose a threat to economic recovery and push the UK back into a recession.

However, most economists believe the cuts will hamper growth but a double-dip recession is unlikely.

A recession is defined as two consecutive quarters of negative growth.

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