The latest revised estimates for growth in the Gross Domestic Product (GDP) for the final quarter of 2010 have revealed that economic growth in the UK is still in decline, with GDP growth now measured at -0.5%.
However, the picture for employers is not as bleak as it might first seem, as the new figure shows a very slight improvement (of one tenth of a percentage point) over the previous revised GDP estimate for the fourth quarter of 2010 which was published in February 2011.
In the light of this news, the future for the rate of growth in the UK economy looks very uncertain. The latest forecasts published by the Office for Budget Responsibility (OBR) have revealed that expectations for the UK's GDP growth in 2011 have been reduced from 2.1% to 1.7%.
In making these forecasts, the OBR stated two key reasons for its revisions:
- The "squeeze on household disposable income" due to the current high rate of inflation.
- The fact that "the economy had less momentum than we expected entering 2011, even after adjusting for the temporary impact of December's heavy snowfall."
April will see the release of important preliminary data on the rate of economic growth in the initial quarter of 2011, with the ONS publishing the figures on Wednesday 27th April 2011.
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