LONDON – LONDON (Sipa) – The recession of the UK economy is deeper than expected: the Gross Domestic Product (GDP) fell 0.7% in the second quarter from the previous quarter, according to figures released Wednesday by the Office for National Statistics. The markets were expecting a more modest 0.2%.
To explain this drop stronger than expected, the British office of statistics advance the possible impact of additional holiday of June, celebrating the Diamond Jubilee of Queen Elizabeth II, and the rainy season.
This is the third consecutive quarter of negative growth in Britain. The country has returned to the recession, commonly defined as two consecutive quarters of falling GDP, earlier this year. Of the last seven quarters, five saw the British economy to contract.
Last week, the International Monetary Fund (IMF) warned that the government of David Cameron might have to reduce the budget cuts if a rebound in the economy was long overdue.