Q3: British economy shrinks by 0.3 pc

Subscribe to Oneindia News

Q3: British economy shrinks by 0.3 pc
London, Nov 25: Britain's recession-hit economy shrank by 0.3 per cent in the third quarter but this was better than initial data had shown, a data report released on Wednesday, Nov 25 said.

Organisation for Economic Cooperation and Development data showed that Britain is trailing in pulling out of the recession.

"Gross domestic product (GDP) contracted by 0.3 percent in the third quarter of 2009," the Office for National Statistics (ONS) said.

"This has been revised from a fall of 0.4 percent in the preliminary estimate of GDP, due to upward revisions to services. GDP is 5.1 percent lower than the third quarter of 2008," it added.

Markets were shocked last month when the ONS had revealed the first quarter-on-quarter estimate of a steep 0.4-percent contraction -- because expectations had been for a return to growth.

"The good news is that UK GDP contracted modestly less than previously estimated in the third quarter," said IHS Global Insight economist Howard Archer.

"This is also good news for we economists as it means we were slightly less wrong in our forecasts of a return to growth.

Britain remains the last major world power still in recession, after the eurozone, France, Germany, Japan and the United States all emerged from the global economic downturn.

OneIndia News

Please Wait while comments are loading...