Britain's GDP 'may have contracted in Q1'

25 April 2012

Britain's gross domestic product (GDP) may have contracted over the course of the first quarter of 2012, a Bank of England (BoE) policymaker has said.

David Miles, who is a member of the institution's Monetary Policy Committee (MPC), believes the country's economic recovery in the aftermath of the global downturn has yet to get going.

Later this morning (25 April), the Office for National Statistics will publish the UK's GDP data for the opening three months of the year - and Mr Miles is anticipating a weak set of figures.

Earlier this month, Mr Miles was outvoted 8-1 by his fellow MPC members when he backed another round of quantitative easing to boost the nation's ailing economy.

And in an interview with Bloomberg, the official believes further stimulus remains necessary due to the "pretty weak" nature of growth at present.

"The weakness of demand, given the amount of spare capacity in the economy, still made a strategy of having monetary policy even more expansionary the right one,” he added.

By Tony Aynsley

Become a bobsguide member to access the following

1. Unrestricted access to bobsguide
2. Send a proposal request
3. Insights delivered daily to your inbox
4. Career development