UK recovery 'could stay weak in Q4'

29 October 2012

Britain's recovery could remain weak in the final stages of 2012, despite the fact new official figures show the country's economy grew during the third quarter.

That is according to deputy governor of the Bank of England (BoE) Charlie Bean, who has warned that the gross domestic product (GDP) upturn seen in the last three-month timeframe does not necessarily mean the nation's recovery is accelerating.

Last Thursday (25 October), the Office for National Statistics revealed the UK experienced economic expansion of one per cent in quarter three, which has led to speculation the country is emerging from its double-dip recession.

However, during an interview with Dermot Murnaghan on Sky News yesterday, Mr Bean has called on economists to "avoid getting over-excited" about the figures.

The BOE official insisted that the upward movement was primarily due to the recovery after the second quarter's extra bank holiday and the "fillip" provided by the Olympics.

"The big picture here really is of an economy that has been bumping along the bottom for at least two years," he added.

By Asim Shah

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