UK economy in double-dip recession
The UK economy has returned to recession, after shrinking by 0.2% in the first 3 months of 2012.
The Office of National Statistics held that a sharp fall in construction O/P was behind the surprise contraction.
The UK economy shrank by 0.3% in the fourth quarter of 2011. The UK economy was last in recession in 2009.
What is Recession?
A Recession is defined as two consecutive quarters of contraction. A period of general economic decline; typically defined as a decline in GDP for two or more consecutive quarters. Thus, in economics, a recession is a business cycle contraction, a general slowdown in economic activity.
What is Double Dip Recession?
When gross domestic product (GDP) growth slides back to negative after a quarter or two of positive growth. A double-dip recession refers to a recession followed by a short-lived recovery, followed by another recession.
The causes for a double-dip recession vary but often include a slowdown in the demand for goods and services because of layoffs and spending cutbacks from the previous downturn.
A double-dip (or even triple-dip) is a worst-case scenario. Fear that the economy will move back into a deeper and longer recession makes recovery even more difficult.
Thus, Double Dip recession is, the recession happening two times with the small gap in b/w.