British economy exits recession
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Britain’s GDP grew 0.1% in the fourth quarter of 2009, meaning that after six quarters of contractions the economy has exited recession.
According to the Office for National Statistics (ONS), the growth in output was mainly owing to increases in distribution, hotels and restaurants, and government and other services.
The end of the recession had widely been predicted, however the rise in GDP was less than predicted. (article continues below)
The Confederation of British Industry (CBI) had forecast a rise of 0.5% (quarter-on-quarter) in the fourth quarter of 2009, while a first estimate by the National Institute of Economic and Social Research (NIESR) predicted GDP to grow 0.3%.
Today’s announcement ends Britain’s longest period of being in a recession, which is defined by two quarters of negative GDP growth. It began in the April-to-June quarter of 2008.
