The British economy has ceased to contract, but the economic activity remains weak with a gross domestic product growth of 0.1 percent in the three months to May, the National Institute of Economic and Social Research (NIESR) said Tuesday, releasing its monthly GDP estimates.
In the three-months to April, the GDP fell 0.1 percent. "We expect the UK economy to remain broadly 'flat' over the next 6 months," the think tank said.
With the economy stagnant, the negative output gap is likely to widen further. However, the economic recovery will begin to take hold in 2013, despite the persistence of significant downside risks, the Institute said.
Official figures show that the economy entered a double-dip recession in the first quarter of 2012 with the GDP contracting 0.3 percent sequentially.
by RTT Staff Writer
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