The UK economy grew by 0.1% in the last quarter of 2009. 0.1% is better than a negative figure, but it reveals how fragile the economic ‘recovery’ is. Some papers are pointing out that (1) this figure may be revised downward later, and (2) 1Q 2010 may see Britain going back to recession (remember the snow and all the chaos?).
Coupled with some unsettling inflation figures, it does not augur well. I think the ‘feel-bad’ factor will remain strong. Taxes have gone or are going to go up, the cost of the essentials will go up, the next energy bill will be larger because of the cold winter, etc. 0.1% may be a start, but it’s very small. While it is a welcome news, it’s not something to celebrate or gloat about, yet. Tough times are still ahead.
Financial Times: UK economy moves out of recession
The Times: Britain exits longest recession on record – just
Guardian: UK scrapes out of recession but growth figure disappoints City