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Darling admits UK is moving "towards" recession
24 Oct 2008Chancellor Alistair Darling admitted the UK was moving "towards" recession today after official data revealed that the economy shrank by 0.5% between July and September.
The figure was far worse than had been expected, and marked the first time in 16 years that Britain had fallen into negative growth.
It was also the biggest GDP decline since the fourth quarter of 1990. If growth in this quarter is also negative then the country will formally be in recession.
But Mr Darling told Sky News the UK would weather the storm, and stressed that the whole globe was enduring problems from the credit crunch and a spike in oil prices.
"That will mean that the economy, like every other country in the world, will move towards recession," he said.
Speaking before Opec decided to cut oil production by 1.5 million barrels a day in response to recent price falls, Mr Darling said such a move would be "disappointing".
"Oil prices have more than halved in the last few weeks. I would be disappointed if they decided to cut production.
"I hope that, no matter where you are in the world, governments realise that this problem is only going to be resolved reasonably quickly if they work together."
Reader views (5)
Subtext: 'the situation is now so appalling even the electorate's Great Aunt's Cat has noticed, so I cannot pretend not to know myself'.
- Roz, Chamonix, France, 24/10/2008 15:08
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As Chancellor of the Exchequer he should have been the first to see this coming, not the last!
- Keith Lonsdale, Doncaster, 24/10/2008 14:49
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Remind Me - Darling is Chancellor right?
For two weeks minimum Bankers, Journalists, the IMF Et Al have told us that we are in recession. This week Mervyn King confirmed it and today Friday 24th the Chancellor admits we are moving towards a recession!!
Nonethewiser, Woking...
- Cromwell, Woking, England, 24/10/2008 13:58
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Since the recession is marginally created by investors being frightened away one must wonder where they (the investors) feel safe to put their pile of funding!
- Tony Islander, Herts, 24/10/2008 13:27
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All that past hype from Government about 'us' being able to weather the global storm. Its become a truly sick joke.
Its no wonder the country's opinion is that this crazy government should stay in power to sort out the problem they caused. The trouble is as to whether they'll make an even bigger mess.
- Tony Islander, Herts, 24/10/2008 13:22
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