More disappointing news for the economy as growth flat lines

Steve McCabe MP has condemned the government’s economic policy after disappointing GDP figures showed the UK’s economy barely grew in the first quarter of 2013.

Figures released today by the Office for National Statistics showed the economy grew by just 0.3% in the first three months of the year.

 

This news comes shortly after the Fitch credit ratings agency downgraded the UK’s AAA rating due to a weaker economic and fiscal outlook.

 

This isn’t the only bad news the economy has had in so many days which came after the International Monetary Fund slashed its forecast for growth from 1% to 0.7% in 2013.

 

Latest unemployment statistics also showed a rise of 70,000 bringing the unemployment rate to 7.9%. In Birmingham Selly Oak constituency long-term unemployment is still up 16% on last year and even worse long-term youth unemployment is up a huge 43% in the area.

 

Steve McCabe said:

“The Chancellor has shut the door on common sense and is pigheadedly pursuing a failing economic policy. Our economy has flat lined, unemployment is stubbornly high, the IMF is rapidly losing faith and what is the government’s answer? Carry on regardless.

 

“People in my constituency and across the country are facing a real cost of living crisis as unemployment rises and wages fail to keep pace with inflation. The number of people turning to food banks has tripled in the past year and more are needed right across the UK, I find it incomprehensible that in the 21st Century so many families are relying on food aid.

 

“The Chancellor is presiding over an economy that is failing to create jobs and growth and at the expense of what? Paying down the deficit – at his current rate that will take 400 years. No, at the expense of hard working people across Birmingham and the UK.”

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