subject: The European Economy Is Hovering At The Bottom, The British Economy Close Zero Growth [print this page] The recently released data show that the European economy is still hovering at the bottom: the British economy this year may be zero growth, the Italian economy has continued to decline.
Bank of England expects the UK economy to near-zero growth this year.
British central bank - the Bank of England released a report on the 8th, a further decline in the growth of British economic, this year is expected to close to zero. The Bank of England pointed out that the biggest threat of economic recovery comes from the euro zone crisis. Released in May on a forecast data, the bank expects the British economy grew by 0.8%.
Some people therefore predict that the Bank of England will take further action to stimulate the economy, the most likely measures to further cut interest rates. Britain's benchmark interest rate at the lowest level in history, has been maintained at 0.5% over the last three years. Bank of England Governor Mervyn King denied on further interest rate cuts predicted. He said, cutting 25 basis points of interest rates would not have much effect on economic growth, but may give a negative impact on financial institutions and the construction industry.
The UK economy is currently in recession, following the fourth quarter of last year and the first quarter of this year, gross domestic product (GDP) contracted by 0.3%, again in the second quarter of this year contracted by 0.7%.
Italy's economy down 0.7% qoq
Italian National Bureau of Statistics released the latest data on the 7th said, the country's gross domestic product (GDP) in the second quarter of this year declines 0.7%, a decline of more than expected, which is four consecutive quarters of economic qoq decline. Seasonal economy fell 2.5%.
When the first quarter of this year, the Italian economy fell 0.8%, in the third quarter and the fourth quarter of last year the Italian economy decreased by 0.2% and 0.7% respectively. Ben May, an economist of the British research institutions think, the dwindling business activities is a major obstacle to development of the Italian economy. Retail sales decreased, consumer confidence slump and the sharp drop in the total banking sector lending have seriously hampered the development of the Italian economy.
ISTAT also released on the 7th, the Italian industrial production output index fell 1.4% in June, representing a significant decrease of 8.2% year-on-year. In addition to the mining industry, other industrial area of the output value is a substantial decline in this country. The second quarter of the overall industrial output in Italy fell 1.7% in the first quarter, industrial output fell 2.3%.
by: loveboa
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