Accounting for Britain’s Q2 GDP

UK GDP increased by just o.2% in the 2nd quarter of 2011. But not all is at it seems. There were a number of special events associated with 2011 Q2 including; the additional April bank holiday; the royal wedding and the after effects of the Japanese tsunami. According to the ONS,

“It is not possible to state precisely what the net overall impact of these special effects might have been. Analysis that we have carried out indicates that Q2’s special events may have had a net downward impact on Q2 2011 GDP of 0.4 in the services sector and 0.1 in the production sector. These estimates are broad brush and illustrative. There can be no certainty as to the impact of the special events and there may be other factors at play. “

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