Economist says UK experiencing market recovery
Tue, 10 Nov 2009
There is little doubt that the economy is on the road to recovery, one finance expert has claimed.
According to Hetal Mehta, senior economic advisor to the Ernst & Young ITEM Club, the worst of the recession has definitely passed given the size of the output falls seen at the beginning of last year.
She said that the latest gross domestic product figures – which indicated a 0.4 per cent economic contraction during the third quarter of the year – were likely to be revised upwards.
"Whether it shows that we were out of recession in Q3 or not, it is just a technicality really," Ms Metha stated.
"Essentially it is still either small growth or a small contraction. I do think that going forward we will probably see GDP increase in Q4 - I would like to say it was a dead cert but people were proved wrong in Q3."
She said the momentum in the economy seems to be upwards at least, adding that people will be bringing forward some of their spending ahead of the VAT rise.
"[We are] seeing a recovery but it is not going to be particularly rapid - growth will be quite slow," Ms Mehta added.
Last week, the Bank of England froze interest rates at 0.5 per cent and extended its quantitative easing programme by a further £25 billion.
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