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UK economic output loses five years, says NIESR | UK economic output loses five years, says NIESR |
(40 minutes later) | |
Economic growth in the UK "remains subdued" and output will not reach 2008 levels until 2013, the National Institute for Economic and Social Research (NIESR) has said. | Economic growth in the UK "remains subdued" and output will not reach 2008 levels until 2013, the National Institute for Economic and Social Research (NIESR) has said. |
NIESR said output fell to 0.3% in the three months to the end of November, from 0.4% in the quarter to October. | NIESR said output fell to 0.3% in the three months to the end of November, from 0.4% in the quarter to October. |
The think tank said that while the recession was over, the period of depression was likely to continue. | |
It also called for further economic stimulus in the UK. | It also called for further economic stimulus in the UK. |
"We do not expect output to pass its peak [of] early 2008 until 2013," NIESR said in a statement. | "We do not expect output to pass its peak [of] early 2008 until 2013," NIESR said in a statement. |
It says it interprets the term "recession" to mean a period when output is falling or receding, while "depression" is a period when output is depressed below its previous peak. | It says it interprets the term "recession" to mean a period when output is falling or receding, while "depression" is a period when output is depressed below its previous peak. |
The latest official figures show that UK economy grew by 0.5% between July and September this year. | The latest official figures show that UK economy grew by 0.5% between July and September this year. |
Print money | Print money |
The think tank said its findings boosted calls for "the further loosening of UK monetary policy". | The think tank said its findings boosted calls for "the further loosening of UK monetary policy". |
In October, the bank said it would inject a further £75bn into the economy by buying assets such as government bonds, in an attempt to boost lending by commercial banks - a process known as quantitative easing (QE). | In October, the bank said it would inject a further £75bn into the economy by buying assets such as government bonds, in an attempt to boost lending by commercial banks - a process known as quantitative easing (QE). |
The Bank has already pumped £200bn into the economy through QE. | The Bank has already pumped £200bn into the economy through QE. |
Earlier, figures from the Office for National Statistics (ONS) showed the manufacturing sector shrank by 0.7% in October, its fastest monthly fall for six months. | Earlier, figures from the Office for National Statistics (ONS) showed the manufacturing sector shrank by 0.7% in October, its fastest monthly fall for six months. |
Compared with the same month in 2010, output was 1.7% lower, again the biggest monthly drop since April. | Compared with the same month in 2010, output was 1.7% lower, again the biggest monthly drop since April. |
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