UK exits recession with nominal quarterly growth
Posted by Jon Wilcox in Strategy & Planning on Tue, 26/01/2010 - 12:32
The Office of National Statistics has confirmed the UK economy grew by 0.1%.
The United Kingdom has left the longest period of recession since records began in 1955, with nominal growth of just 0.1% recorded during the final quarter of 2009. The UK was one of the last major economies to leave recession, belatedly following the likes of the United States, Germany, and France.
The UK recession lasted six consecutive quarters, and started in the second quarter of 2008.
According to the preliminary figures for the final quarter of 2009, “Distribution, hotels and restaurants were the largest contributors to the positive growth this quarter. Government and other services and total production also had significant contributions to the increase.”
“This was partially offset by a small decrease in business services and finance. Construction and transport, storage and communication were flat over the quarter.”
A full set of results for the fourth quarter of 2009 will be released on 30 March, ahead of the publication of the first quarter preliminary figures on 23 April.
The Bottom Line:If Mr Cable has his way...
"If Mr Cable had his way, all the big banks would be broken up and bonuses would be virtually eliminated - a sure-fire way in my view of guaranteeing an end to the UK’s ability to compete as an international financial centre. Let’s not forget that this is a man who is on record as saying that everyone who works in a bank has an ‘aristocratic lifestyle’ clearly demonstrating his lack of understanding of the sector." A tough line on bankers’ bonuses could make a brain drain of financial talent a distinct possibility, warns Paul Marsden. Read more