UK GDP being hit "particularly hard"

The UK’s gross domestic product (GDP) is being hit ’particularly hard’ in the current economic climate, one sector commentator has stated.

Centre for Economics and Business Research senior economist Charles Davis made his remarks following the publication of research by the Office for National Statistics earlier this month.

The data indicated that GDP contracted by 0.3 per cent during the third quarter of this year. GDP is 5.1 per cent lower than it was in the same three-month period in 2008.

Mr Davis said that the UK had a ’particularly severe’ financial crisis when compared to other countries, noting that the banking sector was exposed to a range of risks - such as sub-prime losses.

He continued to note that Britain was ’very leveraged’ when it came the credit crunch and that it had taken on a significant amount of debt.

Mr Davis concluded: ’As households and business look to de-leverage and reduce their debt levels, the UK GDP is being hit particularly hard.’ADNFCR-2318-ID-19484801-ADNFCR