One off events affect economic growth - Economy - News - Moneyfacts

News News brings you the latest financial & economic news & reviews of the best products in the UK by our team of money experts.

One off events affect economic growth

One off events affect economic growth

Category: Economy

Updated: 27/07/2011
First Published: 26/07/2011

This article was correct at the time of publication. It is now over 6 months old so the content may be out of date.

One off events affected the UK economy in the second quarter of the year, as growth slumped to 0.2%.

Figures from the Office for National Statistics (ONS) show that Gross Domestic Product fell from the 0.5% figure in the first three months of the year.

There was a number of events in the second quarter of the year which had an impact on the UK economy.

They included back-to-back bank holidays, the Royal Wedding, the first phase of Olympic ticket sales and the fall-out from the tsunami in Japan .

Without the effects of the events, the ONS said the economy would have grown by 0.5%.

The British Retail Consortium (BRC) said that the figure fell slightly below its 0.3% prediction but it believed the UK economy was still on course for recovery.

"Fears of a double dip recession are not justified," insisted David Kerns, chief economist at the BCC.

"Special factors, such as the Royal Wedding and temporary falls in oil and gas output, account for the weak growth in the second quarter.

"Based on these figures, we believe the Government is right to persevere with its deficit cutting measures aimed at stabilising our public finances. There is no need to consider changes in fiscal policy or talk about the need for a Plan B."

But the Trade Union Congress has hit out at the Government, saying that its campaign of cuts is not working.

"It's hurting, but it isn't working. Ministers told us that deep rapid cuts would get the economy back on course and leave the private sector room to grow," said TUC general secretary Brendan Barber.

"But the treatment has turned out to be worse than the disease, and with the government borrowing more last month than they did a year ago they are not even tackling the deficit effectively."

Find key economic data such as RPI here.

Disclaimer: Information is correct as of the date of publication (shown at the top of this article). Any products featured may be withdrawn by their provider or changed at any time.

Related Articles

Base rate remains unchanged in surprise decision

Earlier today, the Bank of England’s rate setting committee announced that it had voted decisively to keep base rate on hold at its record low of 0.5%. But what does it mean for you?

Budget 2016 – an overview

Well, George Osborne has just revealed the Budget for 2016 – his eighth so far as Chancellor – and as ever, there were some winners and losers from the whole thing. Below is a quick overview of the key points.

What does a US Fed rise mean for the UK?

The US Federal Reserve has decided to raise interest rates, and although you may not think that financial events happening in the US will have much of an impact on UK soil, you may be surprised…