Recession is over

26 January 2010

According to new figures from the Office for National Statistics (ONS), the UK economy has exited recession - growing 0.1% in the final quarter of 2009, the BBC reports.

Figures show that the economy had previously shrunk for six quarters in a row (18 months) - the longest period since 1955, when quarterly figures were first recorded.

James Knightley, economist at ING financial markets, said: "Today`s fourth quarter GDP numbers have confirmed that the UK has finally exited recession - but barely.

"The recent retail sales numbers have disappointed, as has consumer confidence, while consumer fundamentals remain very poor. Indeed, household indebtedness remains at very high levels and household incomes are under downward pressure from a weak labour market and higher taxes."

A debt expert for Think Money added: "Although the UK is officially `out of recession`, it is important to bear in mind that personal debt levels are still high - and expected to remain so for a long time yet.

"We would advise anyone who is struggling with their debts to contact a professional debt adviser without delay."

Tags: recession, over, ING, Office for National Statistics

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