Britain vulnerable to ‘triple-dip’ recession
With the shriveling of Britain’s economy shrank by 0.3% in the final quarter of 2012 and 0% growth in its GDP for the year as a whole, the country is facing an elevated risk of a “triple dip” recession.
UK is grappling with the economic problems created by the high debt inherited by the government and eurozone crisis.
There are fears that if Britain’s economy shrinks also in the current first quarter then the country might enter its third recession since the 2008 global financial crisis.
- Technically, a recession requires two consecutive quarters of falling output.
Britain is not a member of the eurozone but has been affected by the neighboring bloc’s ongoing financial crisis.
The activity has been impacted also by deficit curbing austerity measures from the nation’s Conservative-Liberal Democrat coalition government.