UK Recession not as bad as initially feared

It was feared that the UK Economy had fallen by 0.7 per cent a few months ago. However it was announced this week that actually, the negative growth was more like 0.5 per cent. Although this doesn't sound very significant it is a very reassuring sign.

It is thought that the decline in industries such as construction were much smaller and if the government is to stimulate the economy by spending on new projects the industry will benefit even more. However some economists argue that the UK's economy isn't in decline at all. Actually it is in zero growth and is stagnant. If it wasn't for factors such as the extra public holiday for the Queen's Diamond Jubilee, the economy may not have slipped into negatives at all.