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Sunday, 28 October 2012

Britain says hello to triple dip recession

British PM was quick to seize on figures showing the economy had expanded by one per cent, halting the worst slump for 50 years, but the experts warn that the recovery will be short-lived.

The financial analysts warned the rise in gross domestic product announced by the Office of National Statistics could be due to a brief Olympics boost in the summer.

Mr Cameron admitted: “We still have a long way to go and there are still difficulties ahead, but I think these figures do show we are on the right track, that we’ve got the right approach.”

But experts said that many areas of the economy remained in crisis and outside the booming south-east, many people in the country were still struggling.

Shadow Chancellor Ed Balls warned the Government of “complacency” saying that since the 2010 spending review, the economy had grown by a meagre 0.6% compared to the 4.6% predicted by George Osborne.

Mr Balls said: “These figures show that underlying growth remains weak and that our economy is only just back to the same size as a year ago – twelve months of damaging flat-lining.

“And with living standards falling, more tax rises on the way, small business lending down and the Eurozone still in crisis, it would be very unwise of David Cameron and George Osborne to sit back, cross their fingers and hope for the best.

Mr Balls was backed up by several experts including top boss Sir Martin Sorrell, who heads the world’s biggest advertising group WPP.

Mr Sorrell said the UK was still “bumping along the bottom”.

“I don’t think we have green shoots,” he added.

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