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UK GDP revised upwards to 0.4% contraction in Q2

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UK GDP growth has been revised slightly upwards to a contraction of 0.4% in Q2, according to the final estimate from the Office of National Statistics.

This is in line with economists’ expectations and compares with an original estimate of a 0.7% contraction and a second estimate of a 0.5% tightening. The Jubilee Bank Holiday weighed on growth during the quarter.

The UK remains in the midst of a double-dip recession after the economy contracted by 0.3% in Q1 2012 and 0.4% in the final quarter of 2011.

Forecasts remain gloomy for UK growth for this year and 2013. The Institute of Chartered Accountants in England and Wales (ICAEW) has predicted the UK economy will contract this year by 0.5% and show sluggish growth of just 0.9% in 2013.

Its predictions are even gloomier than those made by the Bank of England, which last month cut its 2012 GDP forecast to zero growth, and predicted 1.7% growth in 2013.



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