UK avoids double dip recession, for now - Economy - News |

News News brings you the latest financial & economic news & reviews of the best products in the UK by our team of money experts.

UK avoids double dip recession, for now

UK avoids double dip recession, for now

Category: Economy

Updated: 07/04/2010
First Published: 07/04/2010

This article was correct at the time of publication. It is now over 6 months old so the content may be out of date.
The recovery of the UK economy is still on course and the possibility of a double dip recession has been avoided so far, according to the British Chambers of Commerce. (BCC).

However, the think tank warned that the upturn is weak and there remains a serious risk of a further setback.

Data from over 5,500 businesses revealed that improving performance in the service sector has been the primary driver behind the partial recovery.

Furthermore, confidence levels are firmly in positive territory, confirming the resilience of UK businesses following the recession.

Export orders from UK manufacturers also registered a rise. However, employment in the sector has recorded a large decline.

"Although these results are mixed, they contain some positive features – most notably the service sector's improvement and relatively strong export balances for manufacturers," commented David Frost, director general of the BCC.

Mr. Frost warned against additional business taxes that could stifle the recovery, suggesting the one per cent rise in National Insurance contributions should be replaced by a one per cent hike in VAT.

A separate announcement by the Organisation for Economic Co-operation Development has forecast that the UK economy will grow at a faster pace than many of its G7 rivals – namely Japan, Germany, France, Italy and the US.

The OECD has predicted our economy will grow at an annual rate of 3.1 per cent this year, in line with the Government's forecast announced in the Budget.

Find the best savings account for you - Compare best selling savings accounts
Find the best mortgage for you - Compare best selling mortgages

Disclaimer: Information is correct as of the date of publication (shown at the top of this article). Any products featured may be withdrawn by their provider or changed at any time.