LONDON (MNI) – First quarter GDP data, showing the economy back in
technical recession, were very disappointing and have made the tough job
of rebalancing the economy even tougher, UK Prime Minister David Cameron
told parliament.
The data, out Wednesday, showed a 0.2% fall in GDP on the quarter,
the second successive quarterly contraction. Cameron said that he would
not try and “explain away” the figures, but the Government would stick
to its deficit reduction plans.
“These are very, very disappointing figures. I don’t seek to excuse
them, I don’t seek to try and explain them away,” Cameron said.
“There is no complacency at all in this government in dealing with
what is a very tough situation that, frankly, has just got tougher,” he
said.
“It is very difficult recovering from what is the deepest recession
in living memory accompanied, as it was, by a debt crisis,” Cameron
added.
Cameron said the UK economy had to be rebalanced, with less debt,
an expanded private sector and greater exports.
“It is painstaking, difficult work but we will stick with our
plans, stick with the low interest rates,” Cameron said.
He defended the government’s austerity drive, saying low market
interest rates were a sign of economic credibility and dropping the
deficit reduction plans would undermine credibility.
For more information contact UK editorial on 44-20-7862 7491 or
e-mail: drobinson@marketnews.com.
[TOPICS: M$B$$$,MABDS$]
