The royal wedding impact growth - July 27, 2011
In London
It would be unfair to put all their back, but the marriage of Kate Middleton and Prince William has indeed drag on growth in the second quarter. The holiday offered to the British for the occasion has led to closures of factories, office buildings, helping to slow growth in the second quarter in Britain: 0.2% GDP growth, whichever comes first estimates published yesterday.
Other factors that have sealed-off growth: the heat of April, which reduced electricity consumption, and the drama of Fukushima, resulting in supply problems in the industry. Without these special events, growth reached 0.7%, according to the Office for National Statistics (ONS).
The general view of economists, these figures are not brilliant but the disaster that some had predicted did not occur.The Economy Minister George Osborne is relieved: "The good news is that the UK economy continues to create growth and jobs." But the goal of annual growth of 1.7% is particularly difficult. Also believes the opposition does the government needs to soften its austerity policy: "These figures show that the return to growth has been strangled by the increase in VAT set up by George Osborne and lower costs budget, "said Ed Ball, a spokesman for Labour cash advance today.
"There is no plan B"
But it seems unlikely that the government changes its mind. "Our economy is stable right now because the government has taken tough decisions to take over the debt, Osborne continued. If we abandon this policy as some want, we will jeopardize the jobs and growth. "The Chancellor of the Exchequer is supported by the Liberal Democrat Minister of Commerce, that "there is no plan B. We must keep our commitment. " Vince Cable, that the Bank of England to support growth by easing monetary policy again.
Small encouraging sign: the sale of tickets for the Olympics began during the second quarter, but according to international conventions, will be counted in GDP at the time of the Games themselves, in a year. Alone it is 0.1 percentage point of growth, the ONS calculates.