GDP: Figures For Second Quarter Remain Unchanged At 0.2 Per Cent

Figures For Economic Growth Unchanged At 0.2 Per Cent

The UK economy grew at 0.2 per cent in the months from April to June, the Office for National Statistics has said in its revised estimate of gross domestic product.

Friday's figures, unchanged from the office's first estimate, showed a slowdown from the first quarter of the year which saw an increase of 0.5 per cent.

The ONS said its latest estimate revised down contribution to growth from the production sector slightly, but that was offset by a small upward revision to service sector growth.

Other factors, such as the April public holiday, the royal wedding and the aftermath of the Japanese tsunami, also contributed to the figures.

Analysts said the figures showed a "change of course" in government policy was needed.

“This is not yet a double-dip recession, but it is almighty close to one," Tony Dolphin, chief economist at the Institute for Public Policy Research said.

“The Chancellor’s gamble that fiscal consolidation and low interest rates would lead to a vibrant recovery led by the private sector is clearly not working. The time has come for a change of course.

"Without growth, the economy cannot hope to tackle its two major problems: high unemployment and the budget deficit. The private sector is not delivering the growth that the government hoped it would. Now is the time for policymakers to act to support it.”

Angela Eagle MP, Labour's Shadow Chief Secretary to the Treasury also criticised George Osborne for his "reckless and incautious decision to cut too far and too fast".

“We need an emergency temporary VAT cut to get the recovery back on track and ease the squeeze on families, and Labour has called for a bank bonus tax to fund 100,000 jobs for young people and more investment in regional growth.”

But Mark Hoban MP, Financial secretary to the Treasury told BBC News the recovery would continue to be turbulent, and blamed slow growth figures on the international economic situation.

"We are in a very difficult international economic climate, and in the months since the first release of this data happened we’ve seen continued signs of uncertainty in the eurozone.

“It’s worth pointing out that the first half of this year, we grew faster than the US and in the second quarter we grew faster than both France and Germany. It’s a sign of the difficult climate in which we are operating.”

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