The British GDP dropped during the first quarter of this year, by 1.9 percent, deeper than previously thought. This has prompted call for more powerful governmental measures to boost existing efforts to rescue the falling economy.
The gloomy figure also makes some analysts believe their prediction that Britain will see a 4.5 percent of GDP decline this year, much less optimistic than the 2009 budget forecast, may reflect the real situation in the UK more accurately.
The borrowing announced in the budget is also said to be less than the actual figure. Chancellor Alistair Darling’s borrowing forecast is based on his “over optimistic” prediction that Britain will only see a 3.5 percent fall in GDP this year.
However, the time ahead this year is not all doom and gloom in Britain. The Confederation of British Industry has said the general business sentiment is falling less sharply and the economic decline will moderate in the months to come.
For the full story by Dongying Wang and Rob Welham, published by Xinhua News Agency in April 2009, please click here. Also, please return to the blog to post your comment.
Photo by London Permaculure
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