News - Double-dip recession feared after surprise GDP drop

[HEXUS]

The ONS has revealed the UK economy shrank in Q4 2010, but blames it on the snow.

Read more.

[The Hand]

I'm surprised all the economists are so surprised at these figures! The snow just added to an already bad situation.
I am personal believer in a double dip recession, but with the expectation that second dip would come after an interest rate rise. The interest rates are likely to remain low for some time now (with maybe more QE). I suppose this may mean that when the interest rate does rise, there maybe even a third dip with a lot of home owners who are just about hanging by their finger nails getting their property repossessed.
With the VAT rise and people trying to recover financially from the Xmas, Q1 2011 could easily be another negative growth quarter too and there we have another recession to fulfill the double dip theory.

There is also trouble ahead with banks needing to start refinancing soon, check out this link: http://www.telegraph.co.uk/finance/e...warns-IMF.html

[Platinum]

"This 1.2 percent swing was significantly affected by the December weather - when it was colder than usual and snowed a bit."