Statistics released today by the British Office for National Statistics (ONS) show the recession is worse than previously thought, with the economy not seeing days as bad as these since the Great Depression of the 1930s.
For the first quarter of this year, the Government recorded a deficit of £9.6bn, which equates to -2.7% of GDP. This compares to a revised surplus of £0.5bn in the last quarter of 2009.
The EU also fared worse than the fourth quarter of last year, with a deficit of £8.8bn this quarter, compared to £3.9bn in the last.
It is thought the reason behind the fall into deficit is because there was a lower surplus on income reported. This was joined by a larger deficit on current transfers and trade in goods, along with a lower surplus on trade in services. The surplus on income decreased by £8.1bn to £3.8bn.
However, in business and services finance, the sector increased 0.4% compared to April 2009. The largest contribution to the increase was real estate which rose 2.6%.
ACQ Magazine