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ECONOMIC GROWTH SLOWS AGAIN

The UK’s GDP output grew by only 0.2% in the last quarter, according to ONS figures released today. This follows a 0.5% growth in the first quarter of 2011 and a 0.5% contraction in the final quarter of 2010.

Commenting, Ian Mason, Economic Advisor at Doncaster Chamber of Commerce, said:
“The 0.2% GDP growth rate for the last quarter is a clear message that the UK economy is struggling – the Chamber has constantly warned of the dangers of ignoring, or even exacerbating, the stubborn inflation rate – for this very reason. Policy makers have very few options available to them in terms of boosting growth – as the Prime Minister has today acknowledged. This is tacit recognition of the fact that public spending cuts should not have been front-loaded and the VAT increase should not have been implemented immediately, as both policy decisions taken by Central Government have led to stagnated growth - that could persist for many months to come.”