U.K. economy grew 0.6% in third quarter

Source: Dukascopy Bank
© Dukascopy Bank
"We are looking at flat growth in the current quarter, maybe a slight contraction of 0.1%"
- James Knightley, an economist at ING Bank

U.K. gross domestic product grew revised 0.6 per cent in the third quarter of 2011, faster than previous estimates of 0.5 per cent, said the Office for National Statistics on Thursday. The Bank of England expects the economy to stagnate in the fourth quarter and in the beginning of 2012.

"The sovereign debt crisis is really hurting [UK] businesses. We could turn back into recession in the next couple of quarters," said James Knightley, an economist at ING Bank.

"We are looking at flat growth in the current quarter, maybe a slight contraction of 0.1%. Early next year is key, when the debt crisis could come to a head - any [potential] credit crunch would be a massive constriction on the economy."

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