Thursday

27th Jul 2017

UK recovery lags behind the continent

  • Sterling fell on news of continued economic recession (Photo: Duchamp)

A string of new economic data suggests the UK's recovery is being left behind the EU's large continental countries.

Data produced by the UK's Office for National Statistics showed the economy unexpectedly contracted by 0.4 percent of gross domestic product between July and September of this year.

Thank you for reading EUobserver!

Subscribe now and get 40% off for an annual subscription. Sale ends soon.

  1. €90 per year. Use discount code EUOBS40%
  2. or €15 per month
  3. Cancel anytime

EUobserver is an independent, not-for-profit news organization that publishes daily news reports, analysis, and investigations from Brussels and the EU member states. We are an indispensable news source for anyone who wants to know what is going on in the EU.

We are mainly funded by advertising and subscription revenues. As advertising revenues are falling fast, we depend on subscription revenues to support our journalism.

For group, corporate or student subscriptions, please contact us. See also our full Terms of Use.

If you already have an account click here to login.

Analysts had been predicting that GDP - a measure of all the goods and services produced by a country – would rise by 0.2 percent.

The provisional data compare poorly with that from continental powerhouses France and Germany, both of which recorded positive growth as far back as the second quarter of 2009.

"There are many millions of people who will be deeply concerned to see that Britain is still in recession six months after France and Germany came out of recession," said the UK's Conservative party shadow finance minister, George Osborne.

"It destroys the myth that Britain was better prepared [for the crisis]", he said.

Other figures produced by the EU's statistics office - also out on Friday (23 October) – seemed to confirm this trend.

The EU saw industrial new orders for the 27-member bloc rise by 1.2 percent in August compared to the previous month, but with considerable variation among member states.

The highest increases were registered in Slovakia (up 11.8 percent), the Czech Republic (up 3.2 percent) and France (up 3.0 percent).

The largest declines were seen in Ireland (down 14.6 percent), Poland (down 10.6 percent) and Italy (down 6.4 percent), with the UK also slightly in the negative (down 0.3 percent).

Further national figures released in Germany and France also pointed to recovery.

Household consumption in France was up 2.3 percent in September from August, with the country's economy minister, Christine Lagarde, describing the situation as "encouraging".

However, Spain had to contend with news that the country's unemployment rate is not coming down.

Data from the country's statistics agency said unemployment for the third quarter of 2009 remained on 17.9 percent, the highest level among EU member states.

Over four million people are currently unemployed in Spain, a country which suffered badly when activity in its booming construction sector came to an abrupt halt in the wake of the global financial crisis.

UK downgrade rounds off EU's Black Friday

Rating agency Moody's stripped the UK of its coveted AAA credit rating on Friday (22 February), rounding off a day of economic gloom in the EU.

Greece looking at bond market return

Greece could issue 3-year bonds as early as this week, for the first time in three years, amid mixed signs from its creditors and rating agencies.

Greece to get €7.7bn loan next week

The ESM, the eurozone emergency fund, agreed on Friday to unblock a new tranche of aid as part of the bailout programme agreed upon in 2015.

News in Brief

  1. Werner Hoyer re-appointed as EU investment bank chief
  2. Spanish PM denies knowledge of party corruption
  3. France 'routinely' abuses migrants, says NGO
  4. Swedish government rocked by data scandal
  5. Member states relocate 3,000 migrants in June
  6. Top EU jurist says Malta's finch-trapping against EU law
  7. EU judges rule to keep Hamas funds frozen
  8. EU court rejects passenger data deal with Canada

Stakeholders' Highlights

  1. EU2017EELocal Leaders Push for Local and Regional Targets to Address Climate Change
  2. European Healthy Lifestyle AllianceMore Women Than Men Have Died From Heart Disease in Past 30 Years
  3. European Jewish CongressJean-Marie Le Pen Faces Trial for Oven Comments About Jewish Singer
  4. ACCAAnnounces Belt & Road Research at Shanghai Conference
  5. ECPAFood waste in the field can double without crop protection. #WithOrWithout #pesticides
  6. EU2017EEEstonia Allocates €1 Million to Alleviate Migratory Pressure From Libya in Italy
  7. Dialogue PlatformFethullah Gulen's Message on the Anniversary of the Coup Attempt in Turkey
  8. Martens CentreWeeding out Fake News: An Approach to Social Media Regulation
  9. European Jewish CongressEJC Concerned by Normalisation of Antisemitic Tropes in Hungary
  10. Counter BalanceOut for Summer Episode 1: How the EIB Sweeps a Development Fiasco Under the Rug
  11. CESICESI to Participate in Sectoral Social Dialogue Committee on Postal Services
  12. ILGA-EuropeMalta Keeps on Rocking: Marriage Equality on Its Way

Latest News

  1. Insults fly after EU ultimatum to Poland
  2. UK requests EU migration study, 13 months after Brexit vote
  3. EU defends airline data-sharing after court ruling
  4. Stop blaming Trump for Poland’s democratic crisis
  5. EU-US scrap on Russia sanctions gets worse
  6. Czechs, Hungarians, and Poles have one month to start taking migrants
  7. EU Commission sets red lines for Poland on Article 7
  8. Court told to 'dismiss' case against EU migrant quotas