As we enter into a double dip recession, many of us will still have painful memories of the last one in 2009. Some of Britain’s biggest businesses folded, such as Woolworths and many sectors including construction and banking struggled. So what does the double dip recession mean for the UK?
The UK economy shrank by 0.2%* over the first quarter of 2012. This follows a fall of 0.3%* over the final quarter of 2011. The definition of a recession is when we have two consecutive quarters that report a negative growth.
The economical state was partly due to a sharp fall in construction output, as production fell by 0.4% over the first quarter of the year and construction decreased by 3%. Others say that the Eurozone had an impact which could have been a factor in the recession.
As we enter the second half of 2012, growth is expected to pick up. Inflation is predicated to drop, meaning that people will have more money to spend, and unemployment figures are already dropping as more people return to work.
Joanne Elson OBE, chief executive of the Money Advice Trust explains “While the technical recession might have only just returned, unfortunately the people’s recession never really went away.”
To make sure that you protect yourself during the recession you can keep your outgoings down by budgeting and beginning to build up a pot of savings.
*According to official figures released by the Office for National Statistics
Written by Gemma on May 21st, 2012
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