The Office for National Statistics said today that Britain’s gross domestic product fell 0.3 per cent in the fourth quarter – a sharper fall than the 0.1 per cent decline seen by analysts. GDP grew by 0.9 per cent between July and September.
The economy is now 3.3 per cent smaller than its peak in Q1 2008, recovering only about half the output lost during the financial crisis – a worse performance than other major economies.
Britain’s economy also suffered a mild recession from late 2011 to mid 2012.
The biggest driver for the fall in GDP was a 10.2 per cent quarterly drop in mining and quarrying output, the biggest since records began in 1997, driven by disruption to North Sea oil and gas fields.
This knocked 0.18 per cent of GDP, while slightly smaller amounts of damage were done by a falls in factory output and in the ‘government and other services’ category, where the London Olympics had boosted sports and recreation services in the third quarter.