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UK exits recession

UK exits recession

Category: Economy

Updated: 27/01/2010
First Published: 26/01/2010

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 It is now over 6 months old so the content may be out of date.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 UK has officially come out of recession, after figures showed output increased by 0.1 per cent in the final quarter of last year.

Many of the economies of countries in the G20 found their way out of recession in the second and third quarters of 2009, with the Government criticised for lagging behind the likes of USA, France, Germany and Japan.

Today's figures from the Office for National Statistics may raise some cheer with policymakers, especially with the General Election apparently less than four months away.

However, relief that the UK has finally come out of recession after suffering its most prolonged downturn since records began (six consecutive quarters) will be tinged with regret that figures do not reflect a stronger performance.

Liberal Democrat Shadow Chancellor, Vince Cable, said the figures showed an economy that was staggering back to growth.

There had been hope that data would show that the UK achieved growth of 0.3 per cent. It was a figure that the French and German economies both showed when coming out of recession and may reflect a UK that is still lagging behind in its efforts to shrug of the economic downturn.

"There can be no doubt that growth figures are an important boost to the UK's recovery hopes, however there are still severe headwinds to be faced," Duncan Higgins, senior analyst at Caxton FX, said.

"There is has been little data yet this month to suggest strong growth in the first quarter of 2010. With credit conditions yet to ease, it will be sometime before the Bank of England can realistically consider tightening policy."

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