Commenting on the preliminary estimate of UK GDP for Quarter 4 2010 published this morning which shows a 0.5% contraction in the economy, Grahame Smith, STUC General Secretary said:
“These figures expose the alarming fragility of the UK economy. Even without December’s bad weather, ONS estimates that growth would have been flat.
“The recovery has stalled even before it has had to cope with a massive withdrawal of demand through the coalition’s spending cuts. It is essential that the government now prioritises jobs and growth and revisits its economic strategy in the Budget. Proceeding with cuts at this time will increase unemployment and the deficit.
“It is revealing that on the day this shocking contraction in UK GDP is announced, the IMF is forecasting that the second wave of stimulus in the US has significantly boosted prospects for growth. Will the Chancellor learn the lesson?”
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