Politics 14 November 2012 The Bank of England warns Osborne: prepare for a triple-dip recession Osborne said the economy was "on the right track" but the Bank warns growth could disappear in Q4. Print HTML It was always unwise for George Osborne to cite the most recent set of growth figures as proof that "we're on the right track", principally because the good news is unlikely to last. Growth in quarter three, which stood at one per cent, was artificially inflated by the Olympics (which added 0.2 per cent to growth) and by the bounce back from the Jubilee bank holiday (which added 0.5 per cent). There was, as I wrote when the figures were published, a strong chance of a contraction in the fourth quarter. Now the Bank of England has become the latest forecaster to warn of the possibility of a triple-dip recession. In its quarterly inflation report, it notes that Headline outturns for GDP in 2012 have been, and will continue to be, volatile, with the data buffeted by one-off influences such as the Jubilee and the Olympics. In Q3, output increased by 1%. In Q4, that growth rate seems set to fall sharply as the boost from the Olympics is reversed; indeed, output may post a small decline [emphasis mine]. Having claimed that the economy is "healing", Osborne will struggle to explain why the patient has taken another turn for the worse. › Michael Jackson: The boy in the bubble George Osborne at an EU Economy and Finance Council meeting in Luxembourg. Photograph: Getty Images. George Eaton is political editor of the New Statesman. 12 issues for £12 Subscribe More Related articles I believe only Yvette Cooper has the breadth of support to beat Jeremy Corbyn To stop Jeremy Corbyn, I am giving my second preference to Andy Burnham What do Labour's lost voters make of the Labour leadership candidates?