As business experts say that today's announcement, that Wales is back in recession, is "disappointing but not surprising' ITV Wales have been finding out how the effects of the downturn are being by some people in Swansea.
– Robert Lloyd Griffiths, Director, Institue of Directors Wales
The figures are marginal but are extremely disappointing. They’re not surprising because we’ve been on a knife edge for some time and they demonstrate once again that Wales is not immune to the wider UK and European economies.
“Confidence has already taken a battering from the Euro crisis and the latest news means that companies are less likely to boost investment and recruitment this year.
“However, even though we’re back in recession, the IoD does not believe we should slow down on deficit reduction.”
As Wales and the rest of the UK are plunged back into recession many experts are blaming a lack of confidence to invest as one of the contributing factors.
The construction sector was the biggest contributor to the decline in GDP, with a 3% fall in the quarter.
This is a bad sign for Wales which has ten thousand construction firms creating a hundred thousand jobs.
Following today's news there are calls for urgent action to help kick start this sector.
"Plaid Cymru has long been warning that Wales was in danger of falling back into recession.
Plaid Cymru has called again and again for capital investment in new schools, hospitals and infrastructure in order to boost the economy, create and protect jobs and protect Wales from this economic storm."
-ALUN FFRED JONES AM, PLAID CYMRU ECONOMIC SPOKESPERSON.
The First Minister has issued the following statement in respons to today’s GDP figures which show the UK economy has slipped back into recession
– Carwyn Jones, First Minister
We warned the UK Government their spending cuts were too deep, too fast. We warned these cuts would lead to a double dip recession. Today, these figures prove we were right.
The UK Government now need to change course and follow our lead by pursuing an economic policy which promotes sustainable economic growth, creates jobs and ensures people have the skills they need to fulfil their potential.”
The UK is back in recession, after a surprise 0.2% contraction in the economy in the first quarter of the year.
The decline in gross domestic product was driven by the biggest fall in construction output for three years, while the manufacturing sector failed to return to growth.
The preliminary estimate, which may be revised later, means the UK is back in a technical recession, defined as two quarters of decline in a row.
The City had predicted the economy would scrape growth of 0.1% after a 0.3% fall in the previous quarter.
But the current downturn is expected to be nothing like as severe as the previous recession of 2008/09, which spanned more than a year.