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Andrew  Sissons

Short-term recession should not distract from long-term economic challenges

Authors: Andrew Sissons Andrew Sissons

25 April 2012

For immediate release: 25 April 2012

Commenting on today’s GDP figures, Andrew Sissons, researcher at The Work Foundation, said:

“The UK has fallen back into a technical recession, but the underlying state of the economy has not changed significantly. The economy has been stagnant for almost two years, and there are few signs that it is about to return to growth anytime soon.

“However, the return to recession may further dent confidence among businesses and consumers, and may further weaken prospects for a speedy recovery. This is not a time for knee-jerk reactions, but the government must put together a package in the Autumn Statement that provides more convincing support for investment and innovation for long-term growth.
“It is likely that weak exports have been to blame for negative growth during the first quarter. Strong export growth prevented the economy from sliding into recession during 2011, but there are signs that the UK’s trade performance has deteriorated in the new year, which would have hampered the production sector of the economy.”


Notes to editors

1. Andrew Sissons and our other experts are available for interviews, briefings and written comment.

2. The Work Foundation aims to be the leading independent, international authority on work and its future, influencing policy and practice for the benefit of society. The Work Foundation is part of Lancaster University – an alliance that enables both organisations to further enhance their impact.

3. Note on stats - ONS figures show that the UK domestic economy contracted by 0.8% during 2011, but that an improvement in net trade helped overall GDP grow by 0.8%.ONS trade data shows that the UK’s trade deficit widened to £3.4 billion in February 2012, up from £1.7 billion in December 2011.

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