UK In Double-Dip Recession
UK GDP shrank 0.2% in the first three months of 2012, sending Britain into its first double-dip since the 1970s.
The UK economy contracted by 7.1% during the 2008-2009 recession, which lasted five quarters in a row. Since then recovery has been slow – the weakest in 100 years.
The latest decline was caused by falls in industrial and construction output while Britain’s dominant service sector barely grew.
Britain’s service industries, which make up more than three-quarters of the economy, grew by just 0.1% in the first quarter, growth was held back by a drop in output in the business services and finance sector.
Britain is the first major economy to report GDP data for the first quarter of 2012.