Economy shrinks again

GDP fell by 0.3% in the last three months of 2012, according to official figures released today. It could mean the start of another period of recession for the UK.

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First Minister: GDP 'disappointing - but not surprising'

Today's GDP figures are extremely disappointing - but not surprising. We have repeatedly warned the UK Government their austerity cuts were too deep, too fast. The Deputy Prime Minister is now in agreement with us. Their cuts to capital investment in major infrastructure projects is causing damage to our economy at a time when spending by households and businesses is too weak to offset cutbacks in UK Government spending.

– Carwyn Jones AM, First Minister

Furthermore, the Chief Economist of the IMF has now advised the Chancellor to reconsider his plans. A new plan for growth and jobs should now be a major priority for the Prime Minister and the Chancellor of the Exchequer.We are doing all we can within our powers to support and encourage business in Wales and our Programme for Government places jobs right at the heart of what we do.

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