"With the latest estimate of GDP unrevised at -0.3pc, the economic picture for the UK remains weak"
- John Longworth, British Chambers of Commerce
Britain's economy contracted in the last three months of 2012, but at the same time grew more than previously thought during the last year, figures from the Office for National Statistics showed Wednesday. Nation's gross domestic product shrank by 0.3% in the fourth quarter, after a 1% growth recorded in the third quarter, keeping alive the danger of a third recession since 2008. The ONS also revised its growth estimate for the year up from no growth to 0.2%. Regarding individual sectors, the service sector, which accounts for three-quarters of the GDP, was revised down to a 0.1% contraction, compared with zero growth in the first estimate. On the other hand, the production sector was revised down from a 1.8% to a 1.9% decrease, while the construction industry is expected to grow by 0.9% against an initial figure of 0.3%.
"With the latest estimate of GDP unrevised at -0.3pc, the economic picture for the UK remains weak. These figures, coupled with the recent downgrade of the UK's credit rating, confirm that action must be taken quickly to get the economy growing again," said John Longworth, British Chambers of Commerce.
"It really underlines that the growth trajectory into this year is at best weak and could even be falling," said David Tinsley, economist at BNP Paribas.
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