Prospect of triple dip recession must not provoke snap reaction
Authors: Tom Phillips
25 January 2013
Commenting on today’s GDP figures, Charles Levy, senior economist at The Work Foundation, said:
“Following three years of a flat economy, today’s GDP figures confirm that our economy is again contracting, raising the prospect of a triple dip recession. 2012 saw considerable improvements in the labour market, with over half a million new jobs created, though many part-time. However, without growth even this improvement will be hard to sustain.
“Figures were pulled down by one-off events and an extended maintenance period for North Sea oil and gas extraction. Nevertheless, the poor performance of the manufacturing sector should be a real cause for concern. These numbers will increase the pressure on the Coalition government to increase support for the economy ahead of the March budget.
“However, rather than advance knee-jerk reactions or short-term injections, the government must pursue a broad structural reform agenda that can provide more convincing support for investment and innovation to drive long-term growth. Further targeted investments in emerging technologies and in leadership skills for SMEs could help to unlock the assets that our economy already possesses.”
Notes to editors
Charles Levy is available for interviews, briefings and written comment.
The Work Foundation is the leading independent authority on work and its future. It aims to improve the quality of working life and the effectiveness of organisations by equipping leaders, policymakers and opinion-formers with evidence, advice, new thinking and networks.
Tom Phillips 020 7976 3554
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