- Friday, 27 November 2009UK gross domestic product (GDP) diminished in the third quarter of this year, with people's desire to get out of debt a contributing factor.
Figures from the Organisation for Economic Co-operation and Development (OECD) indicate the average growth for the 30 nations under the body's remit stood at 0.8 per cent for the quarter, while Britain's fell by 0.3 per cent.
Charles Davies, senior economist at the Centre for Economics and Business Research, suggested the UK's GDP decrease is a result of both businesses and individuals reducing their arrears.
He said: "As households and business look to de-leverage and reduce their debt levels, the UK GDP is being hit particularly hard. They had taken on quite a lot of debt."
Mr Davies went on to say that he expected to see changes in the global economic balance, with the east gaining greater influence.
The seven major countries in the OECD area saw combined GDP grow by 0.7 per cent following zero growth in the second quarter.
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