The third-quarter GDP figures released on the1st November showed an unexpected 0.5% economic growth which shows an annualised rate of 2%, which is the the fastest quarterly rate for more than a year, giving hope to future recovery of the country, helping to raise morale and confidence for the public.
British banks are exposed to Europe's troubled spots as they have loaned a total amount of £220 billion to Ireland, Spain, Italy, Portugal and Greece, whose sovereign debts are under question by bond markets.
Last year the British economy suffered a sharp contraction in it's final quarter of 2010 GDP, which was blamed on the severe weather conditions. Previously the economy had seen a conductive growth in it's GDP which had given positive feed back and encourage to the country. Factors that also contribute to the negative growth that occurred last year were due to the rise in energy bills, which made many households hold back on spending . The other factor was the decline in British exports that were being experienced, which was reducing the amount of income, coming into Britain.
Overall the positive growth of the third quarter of 2011 shows a positive impact on the growth of the economy in comparison to last years values which gave a pessimistic outlook on Britain's growth.
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