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Economy shrank in 2012

The economy shrank in the last three months of 2012, according to estimates from the Office for National Statistics.

GDP was estimated to have decreased by 0.3% in Q4 2012, leading to fears that the UK could enter a third round of recession.

Production was down 1.8%; manufacturing was down 1.5% and services were broadly flat, while construction actually increased by 0.3%.

The ONS say extended, and later than usual, maintenance to the UK’s North Sea oil field reduced oil and gas extraction in the final quarter of 2012, and was one of the key factors affecting GDP.

Speaking to Channel 4’s economics editor Faisal Islam, George Osborne said: “These problems were many years in the making, and there’s no magic solution.”

He added: “It’s a hard road but we’re heading in the right direction and we’re dealing with our problems. I think the British people understand that it requires hard work and perseverance to tackle these problems.”

Here’s what key commentators had to say about the statistics.

This was posted in Bdaily's Members' News section by Tom Keighley .