Lower than expected contraction showed the British economy
Lower than expected contraction showed the British economy in the third quarter thanks to a stronger construction activity and increasing fixed investment.
As announced today by the statistical office of the country, the UK GDP fell by 0.2% over the second quarter, against a fall of 0.3% reported by service in the previous forecast. Economists expect the economy shrinking by 0.1%.
Meanwhile, the Confederation of British Industry (CBI) yesterday raised its forecast for economic growth in 2010 and estimated that the Bank of England (BOE) may discontinue the program bond market next February. The bank is committed to print new money – 200 billion pounds – to support the recovery of the British economy.
According to Eurostat data, GDP contracted by 5.1% yoy, compared to 4.9% as expected on average by analysts.