UK is far from out of the economic danger zone
- Published on Tuesday, 01 November 2011 11:40
- Posted by Scott Buckler
Commenting on today’s GDP figures, Andrew Sissons, researcher at The Work Foundation, said
“Growth of 0.5% is an unexpected piece of goods news for the economy. It is particularly encouraging to see growth in business services, which will be key to the recovery, although growth in the production sector of the economy remains relatively slow.
“But this good news does not disguise a labour market which has been in freefall over recent months, and it is worrying to see government services making the most significant contribution to growth.
“The UK is far from out of the economic danger zone. The greatest threat is of stagnation or low growth over the next year or two, which would most likely lead to further increases in unemployment, and would make it much harder for the government to control the budget deficit.
“These figures should spur the government on to address structural problems in the UK economy, and to put in place the conditions for much stronger growth over the medium-term. Economic recovery requires decisive action to unlock finance for fast-growing firms, to stimulate mass investment in research and innovation, and to address the UK’s underlying trade problem.”
Source: Work Foundation