The British Chamber of Commerce (BCC) has informed that there is a high probability that the wraith of a triple dip recession was averted owing to strong exports in the first three months of 2013. However, it was underlined that any recovery would be probably slow and modest.
Avoiding triple dip recession
According to the findings of a report conducted by the national body, the country will avoid entering a triple dip recession. The threat was averted thanks to strong exports. The report, which was issued on the 2nd of April, indicated that the UK enjoyed strong exports in the first quarter of 2013, thereby boosting business confidence. However, the British Chambers of Commerce underlined concurrently that an economic recovery would be slow and modest. Therefore the body asked Chancellor George Osborne to introduce all measures which had been presented by him in March.
The findings of the survey of over 7,000 companies also demonstrated an increased business confidence. Indeed, UK businesses are ready to invest. David Kern, chief economist at the British Chamber of Commerce, underlined that latest economic data and the findings of the report showed that the UK economy continue to expand, noting: "The survey reinforces our assessment that recent gross domestic product (GDP) figures published by the Office for National Statistics (ONS) have exaggerated the weakness of the UK economy and the volatility in output.”
In addition, the British Chamber of Commerce also informed that the avoidance of triple dip recession in the UK was also possible due to strong exports which were boosted by the weak pound. But also the UK also witnessed improvement in the manufacturing sector which is certainly comforting as on the 1st of April Wall Street's S&P 500 index slumped after figures regarding factory activity in the US and China turned out to be weaker than initially estimated.
Also the UK recorded strong performance in the services sector which accounts for as much as 75 percent of the country’s economy. Therefore analysts are convinced that first-quarter GDP, which is due to be issued on the 25th of April, will be a positive surprise showing that the UK has avoided the triple dip recession.
No triple dip recession according to OECD
Certainly, the projections of the British Chamber of Commerce will be welcomed with relief as the UK economy contracted in the final quarter of the year ended December 2012. Another quarter of contraction would without a doubt drive the UK in the abyss of the triple dip recession.
Interestingly, the British Chamber of Commerce is not the only body that is convinced that the UK has avoided sliding into the triple dip recession as the opinion is also shared by to the Organization for Economic Co-operation and Development. According to the international organization, the services sector improved significantly and climbed in January, thereby averting the wraith of the triple dip recession in the UK. It was underlined by the Organization for Economic Co-operation and Development that the government should focus on its monetary and fiscal policy as it had already led to some improvements.