Balls: “Complacent and out of touch” Cameron and Osborne to blame for deeper double-dip

The UK economy shrank by more than first thought, down 0.3% in the first quarter of 2012, and down 0.6% over the past two quarters - a deeper double-dip.

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It’s grim. The UK economy shrank by more than first thought, as Chart 1 shows, down 0.3% in the first quarter of 2012, and down 0.6% over the past two quarters – a deeper double-dip than initially estimated.

Chart 1:

GDP-percentage-change-on-previous-quarter-2010q1-2012q1-2nd-estimate
The “Second Estimate of GDP, Q1 2012” (pdf) from the Office for National Statistics reveals:

• UK gross domestic product (GDP) in volume terms decreased by 0.3 per cent in the first quarter of 2012, revised from a previously estimated decline of 0.2 per cent;

• Output of the production industries fell by 0.4 per cent, within which manufacturing output was flat;

• Output of the service industries rose by 0.1 per cent, while output of the construction industry fell by 4.8 per cent;

• Household final consumption expenditure increased by 0.1 per cent in volume terms in the latest quarter;

• In current price terms, compensation of employees was unchanged in the first quarter of 2012.

 


See also:

US economy grows as UK economy shrinks 27 Apr 2012

Krugman: “Keynesians have been completely right, Austerians utterly wrong” 26 Apr 2012

Osborne’s ideology-driven economics have failed: We’re all paying the price 25 Apr 2012

UK double-dips for first time in 37 years; Balls: Government’s economic credibility “in tatters” 25 Apr 2012

Osborne’s expansionary fiscal contraction has failed 24 Apr 2012


 

Responding to the poor figures, shadow chancellor Ed Balls laid the blame squarely at the doors of Numbers 10 and 11 Downing Street:

“Our complacent and out of touch prime minister and chancellor have spent the last week claiming their plan is on track, but these figures show that Britain’s double-dip recession is even deeper than first thought.

“What more evidence can David Cameron and George Osborne need that their policies have failed and that they now need a change of course and a plan B for growth and jobs?… It is families and businesses that are paying the price with incomes being squeezed, companies going bust and long-term unemployment at a 16 year high.”

Looking at international comparisons, he added:

“It’s now clear that this is a recession made in Downing Street by this government’s failed policies.

“Despite all the problems in the euro area, France, Germany and the eurozone as a whole have so far avoided recession and only exports to other countries stopped us going into recession a year ago. The result is that Britain is now in a weaker position if things get worse in the eurozone in the coming months.”

Indeed, in the 18 months since the spending review in the autumn of 2010 the UK economy has shrunk by 0.4 per cent – and looking further back, the US economy is now 1.3 per cent above its pre-crisis peak, the UK economy 4.4 per cent below. Grim times indeed.

 


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32 Responses to “Balls: “Complacent and out of touch” Cameron and Osborne to blame for deeper double-dip”

  1. Samyouwell

    “Complacent and out of touch” Cameron and Osborne to blame for deeper double-dip recession – http://t.co/GAuKQCDm

  2. Kyron Hodgetts

    “Complacent and out of touch” Cameron and Osborne to blame for deeper double-dip recession – http://t.co/GAuKQCDm

  3. Richard Hayton

    .@EdBallsMP: “Complacent and out of touch” Cameron and Osborne to blame for deeper double-dip: http://t.co/BfIN9qV1 by @ShamikDas

  4. David Taylor

    .@EdBallsMP: “Complacent and out of touch” Cameron and Osborne to blame for deeper double-dip: http://t.co/BfIN9qV1 by @ShamikDas

  5. BevR

    .@EdBallsMP: “Complacent and out of touch” Cameron and Osborne to blame for deeper double-dip: http://t.co/BfIN9qV1 by @ShamikDas

  6. Timbo

    So, since the the coalition’s emergency budget shortly after the election, total growth is negative at -.04%.

    With a large fiscal hindrance effect in Q2 from tax credit and welfare cuts and public sector job cuts – plus the effect of the bank holidays – we should expect another contaction, probably larger than -0.3% for the next quarter.

    p.s.
    Hello? Lord Blagger? This space below the article seems to be in dire need of some banal and economically incoherent comment below it with your name on it.

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  8. Janet Graham

    .@EdBallsMP: “Complacent and out of touch” Cameron and Osborne to blame for deeper double-dip: http://t.co/BfIN9qV1 by @ShamikDas

  9. BevR

    RT @leftfootfwd: Balls: “Complacent and out of touch” Cameron and Osborne to blame for deeper double-dip http://t.co/agjnxJl3

  10. paul and lynn hewitt

    RT @leftfootfwd: Balls: “Complacent and out of touch” Cameron and Osborne to blame for deeper double-dip http://t.co/agjnxJl3

  11. dsugg

    RT @leftfootfwd: Balls: “Complacent and out of touch” Cameron and Osborne to blame for deeper double-dip http://t.co/agjnxJl3

  12. Foxy52

    RT @leftfootfwd: Balls: “Complacent and out of touch” Cameron and Osborne to blame for deeper double-dip http://t.co/agjnxJl3

  13. Mattgaltress

    Well how much more recession, and how much more muttering will it take for Cameron to change course?

  14. JC

    Is this the same Ed Balls who acts like a sixth former at a school debate? Could you find someone more erudite with experience of success to explain how to manage an economy.

  15. Nick Ryder

    .@EdBallsMP: “Complacent and out of touch” Cameron and Osborne to blame for deeper double-dip: http://t.co/BfIN9qV1 by @ShamikDas

  16. Anonymous

    Ah yes, because you need to sling insults rather than actually admit that your economics has been a disaster.

  17. Anonymous

    Y’know, this is another one of those “obvious question” things. The Coalition’s plan is on track…

  18. Selohesra

    Brilliant – a touch of irony from the Botster

  19. Anonymous

    Irony?

    No, it’s the plain and simple truth. Let’s go for the irony now though…

    Well, I see we need a new term, to turn your insults back on back on you. So, it’s “double dip denier”.

  20. Selohesra

    Once again quite brilliant – nothing meaningful to contribute but that doesn’t stop you having a go. Its a lovely day – why not enjoy it rather than getting all angry again.

  21. Anonymous

    There cannot be any double dip in YOUR world, unless it involves cheese I see. You’re trolling for the sake of it as usual, exposing how nasty your kind are. Keep it up!

    And “angry”? Oh right, you’re projecting from your own problems again. You’re an entirely typical Tory troll, this is an offhand putdown. If you want to make me angry, shoot at me (but don’t).

    I /am/ mildly annoyed that I have University work to mark and have been stuck inside all week, but that’s as it goes. People like you, who don’t have to work…

  22. Selohesra

    University work to mark – that explains a lot – stuck in your ivory tower away from the real world and annoyed that you are not paid much.

    Actually when it comes to trolling I suspect you are a double agent – a Tory (unlike me) pretending to be even more lefty than the mainstream here just in a bid to discredit the cause.

  23. Anonymous

    I was being polite as usual, BNPer, but if you wna tot be called that I’ll oblige.

    Of course you have to slander me because I’m a left winger, along with the constant frantic accusations of mental illness.

    And of course you don’t have any idea what Universities pay I see.

  24. Selohesra

    BNP are racist – I’ve not posted anything to suggest I am that – more of your twisted fantasies perhaps.

    I’ve told you before I’ve voted UKIP for several years now – perhaps your medication and alcohol abuse has impaired your memory

  25. Anonymous

    And perhaps I don’t care what brand of highly racist, totalitarian ideology you espouse. Because you’ve espoused highly racist ideas here, let alone elsewhere (again, I read more than this one website).

    Oh, they have different threat profiles for my community, but they’re all anti-democratic, barbarian ideologies.

    Warsi, who is so often wrong on so many issues, was right on this.

  26. Selohesra

    Maybe racism is one of your fantasies – its not something I have any time for. Just by repeating false accusations does not make them true (outside of your warped thinking that is)

  27. Anonymous

    Like your fantasies of my abusing alcohol and needing “treatment”, right. Wait, you have those as well.

    Keep up the very personal hatred you have for me, since I’m a left winger.

  28. Selohesra

    I sttruggle to keep up with your smears – they come so thick and fast – still I’m glad you now accept your racism accusations are fantasies

  29. Anonymous

    Nope, the sentence doesn’t parse that way.

    And of course you struggle to keep up when you have so many people telling you the same things. As I said, I read other forums too. Take a hint!

  30. Selohesra

    Not interested in the dodgy sites you visit Botty – my conscience is clear.

  31. Anonymous

    Well sure, as have been the consciences of many of the worst people in history, and the best. That’s not how people are judged and remembered.

    And you’re calling some of the sites you post on dodgy? Well, I’d agree.

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