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Economy contracts 0.7% 'dealing a significant blow to business'

The latest gross domestic product data from the Office for National Statistics has revealed that the UK economy shrank by 0.7 per cent in the second quarter of 2012.

Senior economic adviser at the Institute of Directors (IoD) Corin Taylor claimed that the publication of this information comes as a serious blow to businesses of all sizes operating up and down the country.

He said that the ongoing difficulties being experienced by various nations in the eurozone demonstrates that the UK cannot afford to deviate from the coalition's deficit reduction plan.

Mr Taylor called on the government to take further steps to boost the economy through reforms, including the implementation of state-financed infrastructure projects and more relaxation of employment law and red tape.

"Too often, programmes are moving ahead at glacial speed," the expert commented, adding: "To help unlock corporate cash piles, government needs to show decisive leadership and a real sense of purpose."ADNFCR-1898-ID-801415527-ADNFCR

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