Britain’s growth snaps after 53 years: Pound tumbles on news

In the three months to September Britain’s economy shrunk by 0.5 percent this is the first decline in 16 years according to official GDP figures. Evidence now shows that Britain is now in the first stage of recession, this being the first time since the early 1990’s.

The housing crash and credit crunch has taken control of Britain’s Economy ending the longest unbroken growth run since 1955. With the national income falling by 0.5 percent making this drop the sharpest since the end of the 1990s.

In the previous 3 months to September the economy was at a standstill with zero growth, but September saw the first decline in the economy.

The fall in GDP was worse than ever expected and sent the pound crashing to a new five year low of $1.5616 against the dollar, London stock market has already took a huge battering as the FTSE 100 index fell 258.86 points or 6.3 percent to 3,828.97.

Source: timesonline