British economy shrank in 2011 - Akses Bisnis

Britain is facing the shrink as it is struggling to promote its stagnant economy and to resolve its high unemployment rate.

The estimate of 0.2 percent shrink, released by the Office for National Statistics [ONS] is considered as a sharp drop in the economic activities of the country.

The news of another growth shrink comes amid several [partly state-owned or state-rescued] British banks post massive net losses for the year 2011.

With the Lloyds Banking Group, posting a net loss of 2.8 billion British pounds and the Royal Bank of Scotland announce of a net loss of about two billion pounds.

Economic analysts predicted that a double dip recession was inevitable as the GDP figures would discourage investors causing the British economy to further shrink in the first quarter of 2012.

Previously Britain’s chief secretary to the Treasury, Danny Alexander, described the figures as ‘disappointing’ as he promised to ‘redouble’ efforts to rescue the British economy from the impending recession.

“Unfortunately, UK economic activity is likely to get worse before it gets better with a technical recession likely to be confirmed by GDP numbers for the first quarter of 2012,” said James Knightley, an economist at ING Bank.

Moreover, the British Chancellor George Osborne acknowledged the dire situation of the British economy while blaming Labor officials and the eurozone crisis for the disappointing news about Britain’s economic growth.

MY/JR

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