Niesr: UK GDP shrinks by 0.2% during last quarter
The latest monthly estimate by the National Institute of Economic & Social Research (Niesr) has revealed the UK economy shrank by 0.2 per cent during the three months to the end of July.
The latest estimate follows an earlier decline reported by Niesr of 0.7 per cent in the three months to the end of June.
The institute revealed data had been distorted by the additional bank holiday and moving go the May bank holiday for the Queen’s diamond jubilee celebration.
“These estimates suggest the UK’s large negative output gap is widening,” it reports.
“The National Institute interprets the term ‘recession’ to mean a period when output is falling or receding, while ‘depression’ is a period when output is depressed below its previous peak.
“Thus, unless output turns down again, the recession is over, while the period of depression is likely to continue for some time. We do not expect output to pass its peak in early 2008 until 2014.”
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