Concerns UK 0.5% GDP dip may damage the island's economy

A CONTRACTION in the UK's economy could slow down Guernsey's, the Treasury minister warned yesterday.

Deputy Charles Parkinson (pictured) was speaking following the announcement that in the last three months of 2010, the UK's economy shrank by 0.5% - despite previous growth forecasts.

'It is disappointing news because there is a relationship between the island's economy and that of the UK's,' he said.

'We are concerned that this may lead to a slowdown in Guernsey's economy.'

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