The UK treasury has reported a decline in GDP that was even greater than expected at 0.5% for the third quarter of 2008 (July-Sept). Economic observers expect that this will be followed by an equal or even greater decline in the last quarter of 2008, which will see us entering recession for real. This will fulfill the criteria of official recession which is defines as two straight quarterly drops in GDP.
This has lingered for a while with the Republic of Ireland already having announced recession a few weeks ago. It is likely that it will be the end of February before the UK announces official recession conditions, and there is every chance that by that point, much of the rest of Europe will be recording drops in GDP.
GDP or Gross Domestic Product is a calculation of the total economic output of a nation including goods and services.
Related posts:
Is there really a credit crunch?
Is this a recession?
Credit Crunch News
The Multiplier
0 comments:
Post a Comment