Bad weather minimizes GDP by 0.3 per cent
The latest official statistics revealed that during the last three months of 2012 the UK economy seen a slowdown in its growth. It said that the topical bad weather has boosted the danger of GDP contraction again at the beginning of New Year 2013. The snow all around the UK has created a greater impact on the GDP of UK economy which contracted the GDP by 0.3 per cent.
The information gathered from the office of National Statistics made it clear that UK economy has seen a contraction of more than 0.3 per cent in the last three months of the year 2012. This revelation has come out from the end of ONS in its preliminary estimation and it might become the area under discussion for revision within few months ahead.
According to ONS, the output from the production industries has seen a degradation of 1.8 per cent over the period of next three months while the out from the end of construction industry has seen a rise of about 0.3 per cent and the industry of dominant services practiced unexciting output as it seen a flat output.
During the third quarter of 2012, this followed the expansion of 0.9 per cent and it was due to the boost offered by the London Olympic Games in summers which profited the country. Some economists think that if in case the output sees a fall down during the first three months of 2013 then it would be result caused by the recent falling of snow and this would be creating the exceptional triple-dip recession all across the country.
Howard Archer and expert in economics in UK have state that the snow fall has come at a time which is very delicate for the UK economy. UK has capability of pounding towards bringing to an end even with a crumble. Due to the bad weather economy may visit the time of worries but still it is putting efforts to fight to avoid a threefold dip recession.
He added, the economy of UK is in fragile condition and even only some degree of interference due to snow and freezing conditions could be enough to slant the equilibrium towards modest GDP shrink rather than modest growth during the first quarter of 2013.
According to him, the UK economy is not standing in a stage of bearing any disruption because of anything. It would get affected and the GDP of the economy might start shrinking due to any commotion.
Tom Hoffman is expert in finance and writes on financial terms like 1 month loans, 6 month loans etc. for more visit the link http://www.emonthloans.co.uk/
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