British Economy Shrinks 0.5% in 4th Quarter

Britain’s Gross Domestic Product (GDP) fell by 0.5 percent in the fourth quarter of 2010. The decline marked the end of year-long growth and has some worried that as government spending cuts take effect, the economy could be headed for another recession.

“The GDP figure is quite simply a shock to the system and heightens fears that the coalition government’s austerity plan may well curb growth too excessively and send the UK into a double-dip recession,” said Joshua Raymond at City Index in London.

Source: Associated Free Press

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