Economy shrank in last quarter of 2011

By Bridging Loan Directory -

The UK economy contracted in the last quarter of 2011, according to new figures.

GDP fell by 0.2% at the end of last year following 0.6% growth in the third quarter.

The figures add to pressure on the Government and the Bank of England to take further action to stimulate the economy.

A negative figure for the first quarter of 2012 would put the UK economy back in technical recession.

Many analysts were already forecasting a further expansion of the Bank of England’s quantitative easing programme and the latest GDP figures could hasten that decision when the Monetary Policy Committee meets next month.