UK remains in recession despite growth hopes
Fri, 23 Oct 2009
The UK economy has defied expectations by remaining in recession, following contraction of 0.4 per cent between July and September.
Latest data from the Office of National Statistics indicated that gross domestic product (GDP) declined for the sixth successive quarter, despite many economists expecting a return to growth.
Based upon the published estimate, the UK is now in the longest recession since records began in 1955.
The economy has now contracted by 5.2 per cent, affected in particular by a downturn in mining and services during Q3.
Commenting on the report, Brendan Barber, general secretary of the Trades Union Congress, said that even the co-ordinated world-wide stimulus has "not been able to halt the damage done by the financial crash".
He added: "This is now the longest recession in modern economic history. These worse-than-expected figures should head off the growing signs of complacency. The economy is still extremely fragile."
Earlier this week, business rescue group Begbies Traynor claimed that the UK could have reached the centre point of a 'W' shaped recession.
According to this theory, the economy will deteriorate again before showing sustained signs of improvement.
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