By Marcus Leach

Official data released today (Wednesday) have confirmed that the UK economy contracted by 0.3% between October and December 2012.

However, the Office for National Statistics (ONS) revised their figure for the full year up from showing no growth, to 0.3%.

“In light of recent developments a hold at -0.3% may be viewed by some as a bit of good news for the UK economy," Jeremy Cook, chief economist at foreign exchange company, World First, said.

"A revision to construction sector growth from 0.3% to 0.9% is certainly welcome and goes along with the improving set of sector data we’ve seen since Q3. That said, we cannot shy away from the horrific -1.5% fall in export growth.

“The recent depreciation of the pound is a good thing if you believe that a lower pound will lead to a rebalancing of the UK economy towards export growth. Exports can be made more attractive by pricing, or by simply making products that are so much better than their competitors’ that there is no choice to be made.

“The Bank of England cannot engineer the latter and will instead go with the former of these two options. The problem is that this plan hasn’t worked over the past four years and I would like to know why they think that this time will be any different.”

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