U.K Current Account Deficit Increases to £11.2B, U.K GDP Drops by 0.3% in the First Quarter - 28.6.2012

U.K Gross Domestic Product in the first quarter of the 2012 dropped by 0.3 per cent as it was expected by economists, the Office of National Statistics reported, while in the previous quarter it dropped by 0.3 per cent as well. The Yearly GDP fell by 0.2 per cent, economists projected a drop of 0.1 per cent, as it was in the previous release, however the decline was greater. The British economy remains in negative growth numbers showing that the recession continued in the first three months of 2012. Given that inflation dropped in May to 2.8 per cent, speculation for extending QE at the next meeting of BOE increases.

Finally, the U.K’s Current Account deficit was 11.2 billion pounds in the first quarter of 2012, up from a revised deficit of 7.2 billion pounds in the previous quarter, the Office of National Statistics said today, while it was expected by market participants to be less at 8.9 billion pounds deficit.