The Institute of Directors has reacted to the revised growth figures, calling on the government to “launch QE2”.
Today it was announced at the UK economy only grew by 0.1% between April and June, less than the original estimate of 0.2%.
Graeme Leach, chief economist at the IoD believes that the GDP figures present a very strong case to the government for the need for another round of quantitative easing.
The new figures show the perilous lack of recovery in the first half of 2011, whilst also emphasising that the recession is having deeper effects than previously believed.
He commented: “Hopefully we can still avoid a slide back into recession, but it’s getting scary.
“Even without further intensification in the eurozone crisis, the weakness of the economy makes the recovery highly sensitive to precautionary behaviour by companies and consumers. If the eurozone crisis does intensify a return to recession looks inevitable.”